India Value Fund II mops up Rs 750 cr

Indian private equity market is getting bigger and bigger. After over $1.2 billion investment coming last year, another $1.5 billion is expected to be invested in various listed and non-listed Indian companies in the current fiscal.

Vishal Nevatia of GW Capital Pvt Ltd, which recently raised Rs 750 crore through India Value Fund II, is bullish on India and said, "Foreign investors have started looking at India rather seriously given the recent good performance of the private equity fund managers in India. If they continue to deliver good returns consistently, private equity investments will grow multifold."

IVF raised funds from high quality institutional investors such as Partners Group Zurich, Prudential UK, Grove Street Advisors, Lombard, Peugeot family, CDC UK, etc.

"The IVF strategy is to support mid-sized companies achieve leadership positions in their respective segments. The fund will have around 10-12 companies in the portfolio which will include buyouts, significant minority positions and a couple of investments in companies which require restructuring," he said.

The fund's recent buyouts include a 75 per cent stake in Radio City for an undisclosed amount. GW Capital's earlier portfolio includes Shringar Cinemas, Epicenter, DQ Entertainment and TTK Healthcare. The companies which have already been exited are Biocon and Care Hospitals.

Typically the size of subsequent private equity funds raised by successful fund managers is 2-3 times raised in the previous attempt. India Value Fund, however, managed to raise 5 times the initial fund. The earlier fund had raised Rs 150 crore from domestic investors such as HDFC and LIC.