Key Takeaways
- • Novastar Partners, a newly launched fund of funds, is targeting a corpus of Rs 350 crore ($34 million) and expects to achieve first close within four to six months as of November 2025.
- • The firm is registered as a Category II alternative investment fund (AIF) and will operate as a limited partner (LP) investing in venture capital, private equity, and secondary funds across India's private markets.
- • Novastar is led by Dhruv Jhunjhunwala (founder and managing partner), formerly an investment banker at RBC Capital Markets in New York, and Gaurav Sharma (general partner), previously with Bridgewater Associates.
- • The fund represents a shift toward private fund-of-funds structures in India, joining a limited cohort of private FoFs including HDFC FoF, Oister Global, and 360One that focus on backing Indian startups and new-age companies.
- • Novastar has already deployed capital, making its maiden investment in AJVC (A Junior VC), a pre-seed focused venture fund led by Aviral Bhatnagar, signaling active commitment to early-stage private markets despite still fundraising.
Summary
Novastar Partners, a newly established fund of funds, has announced plans to raise Rs 350 crore (approximately $34 million) to invest in India's private markets ecosystem. The firm, registered as a Category II alternative investment fund under SEBI regulations, intends to reach its first close within four to six months and will operate as a limited partner providing capital to venture capital funds, private equity funds, and secondary market vehicles. This approach positions Novastar within a niche segment of private fund-of-funds structures in India, where government-backed FoFs have traditionally dominated, though some private alternatives such as HDFC FoF, Oister Global, and 360One have established footholds.
The fund is led by Dhruv Jhunjhunwala, founder and managing partner, who brings institutional credentials from his tenure as an investment banker at RBC Capital Markets in New York. Jhunjhunwala previously built experience across technology-driven sectors including e-commerce, software-as-a-service (SaaS), gaming, education, and consumer technology. Gaurav Sharma serves as general partner and brings asset management expertise from Bridgewater Associates, a major institutional investment firm. The leadership combination reflects a strategy anchored in deep market relationships and disciplined capital deployment.
Novastar's stated approach emphasizes curated access to India's top-tier private market opportunities through rigorous manager diligence, meaningful general partner co-investment commitments, and an investor-first structural framework. According to Jhunjhunwala, the firm leverages relationships cultivated across fund managers, institutional investors, and founding teams to identify sponsorship opportunities in the private markets space. The fund has already deployed capital, having made its maiden India investment in AJVC (A Junior VC), a pre-seed venture fund managed by Aviral Bhatnagar focused on artificial intelligence, deeptech, and early-stage technology companies. This initial investment signals active execution capability while fundraising remains ongoing, a common practice among emerging fund managers establishing track records.
The launch of Novastar reflects growing institutional appetite for curated exposure to India's private markets through experienced intermediaries. The rebranding from its original name, Dhruva Investment Partners, to Novastar Partners aligns with broader market positioning as the fund-of-funds gains traction. With a Rs 350 crore target and early capital deployment underway, the firm is positioned to address demand from LPs seeking diversified access to India's venture capital and private equity landscape without direct fund selection and due diligence burdens.
The fund is led by Dhruv Jhunjhunwala, founder and managing partner, who brings institutional credentials from his tenure as an investment banker at RBC Capital Markets in New York. Jhunjhunwala previously built experience across technology-driven sectors including e-commerce, software-as-a-service (SaaS), gaming, education, and consumer technology. Gaurav Sharma serves as general partner and brings asset management expertise from Bridgewater Associates, a major institutional investment firm. The leadership combination reflects a strategy anchored in deep market relationships and disciplined capital deployment.
Novastar's stated approach emphasizes curated access to India's top-tier private market opportunities through rigorous manager diligence, meaningful general partner co-investment commitments, and an investor-first structural framework. According to Jhunjhunwala, the firm leverages relationships cultivated across fund managers, institutional investors, and founding teams to identify sponsorship opportunities in the private markets space. The fund has already deployed capital, having made its maiden India investment in AJVC (A Junior VC), a pre-seed venture fund managed by Aviral Bhatnagar focused on artificial intelligence, deeptech, and early-stage technology companies. This initial investment signals active execution capability while fundraising remains ongoing, a common practice among emerging fund managers establishing track records.
The launch of Novastar reflects growing institutional appetite for curated exposure to India's private markets through experienced intermediaries. The rebranding from its original name, Dhruva Investment Partners, to Novastar Partners aligns with broader market positioning as the fund-of-funds gains traction. With a Rs 350 crore target and early capital deployment underway, the firm is positioned to address demand from LPs seeking diversified access to India's venture capital and private equity landscape without direct fund selection and due diligence burdens.
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