Former Infosys director TV Mohandas Pai and his partner Ranjan Pai have invested $35mn in 4 startups. The duo announced their $100-million (Rs 500 crore) private equity fund in August 2011 that will invest $3-10 million in startups.
Of the $35million investment, $8 million has been in California-based medical technology company Insightra and another investment is ecommerce store, Bookadda.
The private equity has no general partners managing it for a fee (typically, Venture capitalists and buyout specialists collect a management fee of 2% and a performance fee of 20% of any profit).
“We don’t want to be dependent on that small fee you get and the uptick,” Mohandas said. Instead, they will have a team managing investments and operations. Another team of top-notch professionals will represent the fund on the boards of companies in which it invests [via].