Peak XV Partners, previously part of Sequoia Capital, has reduced its growth fund by $465 million to $2.39 billion, citing high valuations in India. In a letter to investors, the firm also cut management fees to 2% and lowered carried interest to 20% on several funds.
The move reflects the challenges of investing in India’s hot market, where valuations for late-stage companies have surged, making deals harder to secure. Despite benefiting from block deals and IPO exits, Peak XV has struggled to find companies with reasonable valuations.
The firm, which raised $9.2 billion across 13 funds, made no changes to its seed and venture funds. If the growth fund triples investor returns, Peak XV’s share of profits could rise to 30%.