Peak XV Partners, formerly Sequoia Capital India, is setting up an “evergreen” fund or a permanent capital vehicle financed by the investment partners to explore wider investment opportunities, Bloomberg reported on Tuesday.

The new vehicle will likely pick up stakes in global seed and early venture funds and invest in sectors and businesses beyond its current portfolio.

Earlier part of US-based Sequoia Capital, Sequoia India & Southeast Asia split from it in June last year and rebranded itself as Peak XV Partners. It has backed several Indian startups including Zomato, Razorpay, Unacademy and Cred.

With the new fund, Peak XV wants to bring “a culture of high accountability and alignment with LPs” (venturespeak for limited partners) and ensure “differentiated” growth capabilities, TechCrunch reported, citing insiders privy to the developments and an internal company memo.

“The Peak XV Anchor Fund is a permanent capital fund that will act like an internal balance sheet. It will drive immense alignment with our institutional limited partners by enabling us to be a significant investor in our own funds,” Peak XV Partners’s managing director Shailendra Singh told The Economic Times. "We believe the anchor fund will provide us a differentiated ability to grow and evolve as an institution and further bind the team together,” he added.

Generally, venture capital firms or private equity firms invest in businesses for a fixed period and return the capital to their LPs. On the other hand, evergreen funds allow long-term investments with a more liquid structure. Profits are generally ploughed back into the fund, allowing investors to infuse and withdraw from the fund sustainably.

According to Bloomberg, Peak XV Partners made the announcement at its annual general meeting on Tuesday and said that investment through the new anchor fund would begin from April.

“Through the anchor fund, investments will be made into different asset classes such as other global funds, listed securities, but that decision hasn’t been finalised yet,” a source told ET adding that the fund will pick up stakes in other funds across sectors and regions.

Sources cited by Bloomberg said that through the new fund, the company wants to pick stakes focused on artificial intelligence and other new technologies.