The $650-million ECP III is the successor to Indivision India Partners and Everstone Capital Partners II. It has a target fund size of $650 million with a $700 million cap, said IFC.
Singapore-registered limited partnership, ECP III, will invest primarily through one or more subsidiaries formed in Singapore and India. The manager is based out of Singapore and the adviser has offices in Mumbai, Gurgaon and Bengaluru, India, according to an IFC disclosure.
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The fund will invest in equity and equity-linked instruments of companies having operations in the Indian sub-continent and cater to or benefit from Indian domestic consumption and infrastructure development expenditures across various sectors.
It is the successor to Indivision India Partners (Fund I), a $425-million 2006 vintage fund, and Everstone Capital Partners II (Fund II), a 2010 vintage fund with $580 million in capital commitments.
"The fund seeks to mobilise co-investment capital and follow-on financing for its investees. IFC, with its local presence and networks, and the ability to invest across the capital structure will be a strong partner of choice," said IFC, adding that the private equity fund raising in India continued to be slow.
IFC's investment will send a positive signal of confidence in the market and catalyse further interest in the capital-constrained PE industry in India and its presence will ensure that best practices are adhered to at the fund and at the investee level, it said.
Everstone III Partners Ltd and Cayman Islands (the General Partner) is the sole general partner of the fund and will exercise control and supervision over its operations. The General Partner is a wholly-owned subsidiary of Everstone Capital Limited, Mauritius, an investment holding company, according to IFC.
Everstone Capital Advisors Private Limited, India, and along with the sponsor and the investment manager, the Everstone Group, will advise the manager on investments. The co-founders and managing partners of the Everstone Group are Sameer Sain and Atul Kapur.
With $2 billion assets under management, Everstone has significant resources and a strong institutional platform.