Global private equity firm Siguler Guff is launching a $400 million continuation fund to retain stakes in four Indian companies, including Baazar Kolkata and Sterling Hospitals. This strategy provides liquidity to existing investors while extending the firm's ownership timeline. The move highlights a rising trend of secondary market transactions in India as private equity firms manage asset lifecycles.
Global private equity investor Siguler Guff is setting up a continuation fund worth between $350 million and $400 million to manage its interests in four Indian portfolio companies. This financial move allows the firm to shift these assets from an older investment vehicle that is reaching the end of its life into a new structure designed for a longer holding period.
Focus on Four Portfolio Assets
The companies involved in this transfer include the value-retail chain Baazar Kolkata, the multi-specialty healthcare provider Sterling Hospitals, the appliance manufacturer Luker Electric Technologies, and the medical device developer Relisys. By moving these holdings into a new fund, Siguler Guff aims to support their growth for a longer time rather than being forced to sell them immediately as the original fund winds down.
This strategy, often called a continuation fund, is increasingly common in the private equity sector. It allows existing investors, known as limited partners, to cash out if they wish, while giving the firm more time to manage and grow the businesses. This follows the firm's recent announcement on August 19, 2026, regarding the final close of its $500 million Global Emerging Markets Growth Opportunities Fund (GEMGO II), which focuses on mid-market, founder-led Indian businesses.
Market Trend in Secondary Transactions
The move aligns with a broader trend in the Indian private equity ecosystem, where secondary market deals are becoming more frequent. Other major firms have adopted similar strategies to manage their funds. For example, Kedaara Capital previously raised funds to support entities like Lenskart Solutions, while Multiples Alternate Asset Management used a similar vehicle to extend its involvement in Vastu Housing Finance and Quantiphi Analytics. Last year, ChrysCapital also launched a $700 million continuation fund dedicated to the National Stock Exchange of India, drawing support from global investors such as HarbourVest Partners and LGT Capital Partners.
Key Challenges for Investors
While continuation funds help firms manage liquidity, they also bring specific challenges that investors should understand. One primary concern is valuation opacity. Since these are private assets without daily public trading prices, determining the fair value when transferring them to a new fund can be complex and may lead to disagreements between existing and incoming investors.
Additionally, there is regulatory uncertainty. In India, the rules governing these continuation funds are still evolving, and guidance from regulators like SEBI is less defined compared to more mature global markets. This can lead to procedural ambiguity for those involved. Finally, the growing reliance on these secondary transactions highlights a challenging exit environment. Firms are increasingly depending on these internal liquidity solutions because finding external buyers or public market exits has become more difficult in volatile market conditions. Investors will continue to watch how these secondary market structures evolve and whether they provide sustainable returns over the long term.