Private Equity firm Faering Capital, which operates in asset management services, is planning to raise $200 million in capital commitments, with a hard cap of $250 million.
In this fund, International Finance Corporation (IFC), part of the World Bank group, has proposed an equity investment of up to $15 million – subject to this not exceeding 20 per cent of total commitments undertaken by all investors – and Faering Capital India Evolving Fund II, an Indian alternative investment fund, alongside which the fund will invest.
IFC is one of India's most influential private equity (PE) fund investors, with $707 million committed to 34 funds since 2000.
Backing a fund in an under-capitalised segment would address the critical gap in the access to finance for mid-sized companies
and aid their scale-up, IFC said.
The fund will focus on providing growth capital to mid-market companies
in India across sectors like financial services, consumer products/services, healthcare, logistics and other consumption-enabling ones.
The fund will be a limited liability company, with a limited life, based in Mauritius and pooling into the Indian AIF, Faering Capital India Evolving Fund III, which would invest in securities of businesses organised in India. The fund’s advisory company is based out of Mumbai.
Faering Capital Advisors LLP, the Advisory company, is founded and wholly owned by Aditya Parekh and Sameer Shroff. It also manages Faering Capital India Evolving Fund I (Fund I), a 2010 vintage Rs 8 billion ($145 million) fund.
IFC recently said fundraising for India's PE market had been difficult – the sector is at a critical inflexion point, and investors look to experienced investors with global reach such as IFC to assess the market opportunity.