Kedaara Capital, an Indian private equity firm, is poised to make a significant mark in history as it aims to secure a staggering $1.7 billion for the largest private equity fund ever established in the country.Kedaara is a prominent buyout fund in India's investment landscape.

The decision is being made as India's stock markets are hitting record levels, indicating a strong interest in the country's rapidly growing economy. This fourth fund by Kedaara represents a major advancement, being 54% bigger than its last fund raised in 2021.

The comapany expects to secure 80% of its capital from existing investors, and the remaining 20% will come from new upcoming collaborators including the notable Cleveland Clinic and the University of Minnesota.

The objective of the fund is to allocate investments across various sectors such as banking, healthcare, consumer goods, and software. This strategy involves acquiring minority stakes as well as complete buyouts in order to enhance the diversification of its investment portfolio.

The rise in geopolitical tensions and changes in market dynamics have led investors to seek diversification away from China. India's portion of private equity deals in the Asia-Pacific region increased to 23% in the previous year, whereas China's share fell to its lowest level in nine years at 31%.

The company's prior investments have totaled $2.4 billion, supporting 27 Indian businesses, such as Lenskart and Mahindra Logistics.

Kedaara's consistent approach of divesting stakes has yielded substantial profits, delivering significant returns to its investors.