Spark Capital is expanding its private-market business with a ₹1,500-crore late-stage private equity fund and a ₹1,000-crore private credit fund, stepping up its focus on high-growth companies and their evolving capital requirements.
The two strategies—Midas Fund II and Spark Equitized Credit Solutions (SpECS) Fund III—underline the Chennai-based financial services group's growing focus on asset management beyond its established investment banking franchise.
The expansion is significant as companies increasingly seek capital beyond traditional venture funding and bank debt, creating an opportunity for investors that can provide both growth capital and structured credit.
Its private equity fund invests in late-stage growth companies with visible liquidity pathways over the next 12-36 months, where earnings growth, valuation discovery and monetization events can create significant value. Operating under Spark Midas Investment Funds, the fund caters to investors seeking returns beyond what broad public markets may deliver over the next cycle.
“Midas Fund I has successfully translated this strategy into execution, with 6 investments (of which 4 are listed) so far. With this Fund I, we launched Fund II. Within 7 weeks of launch, Fund II has already garnered ₹1,200 crore of the planned target of ₹1,500 crore,” Rajesh Parikh, managing partner of the private equity strategy, told Mint.
Launched in November 2024, the first fund has invested in companies including Sedemac Mechatronics, Kusumgar, Renée Cosmetics, Lohia Corp, Indo-MIM and Nilon's.
Midas Fund II began in July 2026 and is yet to make any investments. It has a five-year fund tenure, shorter than most traditional private equity funds and other late-stage private-market vehicles, with provisions for co-investment opportunities, Parikh noted.
Spark's private-market vehicles are built on its deep investment banking (IB) presence, which has consummated transactions aggregating ~$13 billion across capital raising and M&A advisory.
Its core areas of focus include BFSI, B2C digital & consumer, technology & business services, healthcare & pharma, industrial & logistics and infrastructure & real assets.
The combination of late-stage equity and structured credit allows Spark to participate at different points in a company's growth cycle, from expansion and acquisitions to pre-IPO financing and eventual liquidity events.
The group also entered the performing credit business in 2019 through a fund format called Spark Equitized Credit Solutions (SpECS). Through this entity, Spark offers structured credit solutions to high-quality mid-market Indian businesses, targeting equity-like returns through debt-like structures and covenants.
Launched in March 2025, SpECS is currently deploying from its third fund, which has a target of ₹750 crore alongside a green-shoe option of ₹250 crore. As of July 2026, it had raised about ₹545 crore, with 75% drawn and ₹372 crore deployed across 10 portfolio companies, at ticket sizes ranging ₹20–75 crore, Saurabh Agrawal, partner and CIO – Spark Asia Impact Asset Management, told Mint.
The first fund, with a size of ₹256 crore, was fully exited in March 2025, while the second fund, with a corpus of ₹595 crore, has exited 13 out of 18 investments and expects to fully exit as scheduled in November 2027, Agrawal said. Its portfolio companies include Indiqube, Everest Fleet, Fourth Partner Energy, Rentomojo, Furlenco, Klay, GPS Renewables and Just Bake, most of which it has already exited.
Across its three funds, SpECS has deployed over ₹1,250 crore across 36 investments in high-growth companies. These transactions typically cater to end uses such as working capital, capex financing, M&A, cap table consolidation and mezzanine debt for infrastructure, he explained.
“With its sector agnostic strategy, the fund has invested across manufacturing, services, FMCG and fast emerging and high growth sectors like recycling, renewables & sustainability, furniture leasing, co-working spaces etc,” Agrawal noted.
