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Peak XV slashes fund size, cuts fees on some growth funds

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- Peak XV Partners, formerly part of Sequoia Capital, plans to reduce its $2.85 billion growth fund by 16%, or $465 million, in a move to take a more measured approach to investments. - The growth fund, raised in 2022, will now hold approximately $2.39 billion. - Peak XV will tie part of its carried interest to the distribution of profits in its growth and multi-stage funds, while seed and venture fund economics will remain unchanged. - The decision reflects the lack of high-quality investment opportunities in the current market, particularly from companies that raised capital at inflated valuations during the pandemic. - Peak XV is also reducing its management fees to 2% on three growth and four multi-stage funds, and cutting its carried interest to 20% to better align with the interests of its founders and limited partners.