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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 Rs.1,200 crore of the planned target of Rs.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, Renee 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 Rs.750 crore alongside a green-shoe option of Rs.250 crore. As of July 2026, it had raised about Rs.545 crore, with 75% drawn and Rs.372 crore deployed across 10 portfolio companies, at ticket sizes ranging Rs.20-75 crore, Saurabh Agrawal, partner and CIO - Spark Asia Impact Asset Management, told Mint.

The first fund, with a size of Rs.256 crore, was fully exited in March 2025, while the second fund, with a corpus of Rs.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 Rs.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.

Founded more than two decades ago, the integrated Indian financial services group has a diversified presence across three core business verticals: IB, asset management and private wealth management.

Its asset management business manages and invests about Rs.2,700 crore through PMS and AIF offerings across public equities, private credit funds and late-stage growth equity funds.

The private wealth arm serves over 4,000+ clients and has about Rs.42,500 crore of assets under advisory, invested across a suite of financial products tailored to the needs of a diverse UHNI client base.