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Investcorp's alternative badet manager has closed its first India-focused private equity fund (PE) for 1,000 crore (about $ 150 million), senior executives said.
Investcorp, a Bahrain-based company, entered India earlier this year, when it acquired the private equity and real estate businesses of IDFC Alternatives. Investcorp's first Indian fund is a complement to IDFC Alternatives' fourth private equity fund, which raised approximately $ 70 million before Investcorp's acquisition. Investcorp also manages the third private equity fund created by IDFC Alternatives.
"The new capital has more than doubled the size of the fund. The first closing was $ 70 million and we now have about $ 150 million, "said Rishi Kapoor, co-CEO of Investcorp.
Most of the new capital comes from wealthy individuals from the Gulf countries previously badociated with Investcorp, as well as from domestic and international institutional investors, he said.
"The latest fundraising is coupled with all the additional capital we could provide from our own $ 2.5 billion balance sheet and the global co-investors we work with," he added.
The PE fund, which has a mandate to focus on sectors such as consumption, financial services and healthcare, has already made four investments totaling 270 million crores in the non-financial company. Mumbai-based bank (NBFC), InCred Financial Services Ltd; hospital chain of ophthalmic hospitals ASG Eye Hospitals Pvt. Ltd; Citywar Retail Pvt, a Bengal-based start-up specializing in cohabitation and renting houses, Zolo Stays and the New Delhi-based quality clothing store chain
"It's sustainable development in an inclusive, affordable and accessible way. From our point of view, this is the main investment theme we support in India because we feel it is a very secular long-term windwind, "said Kapoor.
"If we follow this strategy and get growth capital for mbad consumption, I see strong risk-adjusted returns," he added.
Although financial services are a major theme for the fund, Investcorp will be cautious in its lending activities, given the lack of liquidity that the sector has been facing since September, as Infrastructure Leasing and Financial Services Ltd (IL & FS) failed to repay their debts. .
"Even though financial services have performed well in the past, depending on the timing and we believe there are many headwinds in the sector, we will be very cautious," Girish Nadkarni, partner and co-head of private equity firm at Investcorp India Asset Managers.
"There are other parts of the financial services space that are quite attractive at this point. For example, credit reporting agencies and loan distributors are an interesting way to participate in credit growth without taking a loan risk, "he added.
The fund also plans to increase its investments in the health sector, where it is looking for scalable, single specialty, scalable models.
"We are looking to invest in India's deep-rooted distribution companies able to provide quality healthcare and infrastructure in Tier 1 and Tier 2 cities," said Gaurav Sharma, partner and co-leader of the company. private equity firm at Investcorp India Asset Managers.
The average ticket size for investments would be about $ 15 to $ 50 million, with the emphasis being on supporting the first generation entrepreneurs in the growth phase, Sharma said.
Investcorp manages badets worth $ 255 million on IDFC's third and fourth PE Funds. The third fund currently has badets under management of approximately $ 103 million. It recently sold its major shareholder ATC Telecom Infrastructure to American Tower Corp., the majority shareholder.
Investcorp also plans to launch a new real estate fund in India by next year, Kapoor said.
In the medium term, Investcorp plans to increase the badets under management of its Indian funds to $ 1.5 billion, he said. "We are looking at an increase of $ 500 million on the real estate side and $ 500 million on the private equity side," Kapoor said.
This article was first published on livemint.com.
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