The eye care firm is promoted by the COO of the fastest growing business. With 170 hospitals, it has grown at a compounded annual rate of 98 per cent in the past five years.
The fund will back professionals with a strong execution record who want to create something big by leveraging their experience and networks. It will provide both seed and growth stage capital to them. There are professionals like V Vaidyanathan (ex-ICICI Bank) from Capital First or Ajit Isaac of Quess Corporation who have created huge value. Capital First, for instance, grew its loan book from Rs 40 billion to Rs 900 bn, even as its market cap grew six to seven times since listing.
Amit Shah, CEO of IIFL Asset Management Business, said: “The last decade has seen many professionals successfully embark on entrepreneurial journey. They have leveraged their past experience as professionals and accessed organised pool of capital from investors to create large enterprises. This fund has been set with a vision to back and promote such professionals.’’
“Historically, the available pool of capital was mostly foreign private equity capital. IIFL India Private Equity Fund is perhaps one of the first home-grown fund to back Indian professionals who have entrepreneurial aspirations,” he added.
The fund will focus on professional entrepreneurs who are ready to ride the mega trend in fast-growing sectors like financial services, consumer, healthcare and technology. IIFL AMC had raised $150 million for its maiden growth fund in 2016, which has been fully deployed. It invested 50 per cent of the capital in venture capital funds like Blume Ventures and 50 per cent in 11 companies
like Ratnakar Bank, AU Finance and Ujjivan. It has exited two of these companies.