Novastar Partners to launch Rs 350 Cr fund to invest in India’s private markets

Former Wall Street banker and investor Dhruv Jhunjhunwala has launched Novastar Partners, an investment firm in India, aiming to support private equity managers and companies through its first fund.

The firm hasn’t shared details about its fund, but a source said it is targeting Rs 350 crore, with an additional Rs 150 crore as a green shoe option.

The fund will operate as a fund-of-funds, investing in other funds—such as venture capital, private equity, and secondary funds—as well as directly in growth-stage companies.

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Most of the targeted corpus will go into direct funds, with investments ranging from Rs 15 crore to Rs 80 crore per fund, the source said. The rest will be invested directly in 8–10 companies.

Most of the capital is being raised from India, with a smaller portion coming from the US, the source added.

Jhunjhunwala said, "Our will focus primarily on technology and tech-enabled businesses, targeting sectors such as software, IT services, healthtech, fintech, edtech, artificial intelligence, and deeptech. “Our goal is to allocate capital into highly scalable, capital-efficient companies that demonstrate strong network effects,” he said.

“We believe the best way to capture India’s golden decade of private market growth is through a fund-of-funds model,” said Jhunjhunwala. “No single company or fund can capture the full breadth of India’s opportunity. Our strategy is designed to give investors diversified access to the country’s most compelling private equity funds and companies within one structure.”

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The firm plans to reveal its first fund partnerships in early 2026, kicking off its investment rollout.

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