The central government is planning to provide a corpus to the Small Industries Development Bank of India (Sidbi) to run a secondaries-focused fund of funds, people in the know told ET.The planned fund, the first such move by the Centre, will back venture capital firms managing vehicles focused on secondary transactions. In a secondary transaction, an investor purchases shares from a company’s existing backers and no money is infused into the startup.
“The evolution of funds focused on secondaries in places like the US and China has shown that it…
