**Kedaara Capital Shifts Gears, Prioritizes Prudence Amid Private Asset Price Inflation**
Private equity firm Kedaara Capital is throttling back on new investments, imposing stricter underwriting standards due to concerns about valuation disparities between their deals and market prices.
Co-founder Manish Kejriwal Manish Kejriwal recently signaled a shift in strategy, telling Mint that the firm is accelerating its divestment plans as private asset prices remain stubbornly high. Founded 15 years ago by Kejriwal, Sunish Sharma, and Nishant Sharma, Kedaara Capital has made a name for itself with high-profile deals.
One notable transaction in 2025 saw Kedaara cash out **296 crore** through Lenskart’s **offer for sale**. However, with market valuations skyrocketing, Kejriwal believes it’s a good time to reassess their investment approach.
Private equity firms like Kedaara typically look for undervalued assets to snap up at a discount, flip them for a profit, and exit before the market value surges. But with private asset prices inflated, the risk of overpaying becomes more pronounced.
**Underwriting Tightens: What This Means for LPs and Startups**
Kedaara’s underwriting process – essentially the criteria used to evaluate investment opportunities – is being beefed up, which might lead to fewer deals being greenlit. Limited partners (LPs), who invest in private equity funds like Kedaara, may see a decrease in returns as a result.
This shift might also impact startups, which may find it harder to secure funding from firms like Kedaara. While Kedaara’s tightened underwriting process might help mitigate risks, it may also reduce the firm’s capacity to back ambitious projects.
As Kedaara Capital navigates the complexities of private asset price inflation, their investors and potential partners will be watching closely to see how this strategy plays out.
