Religare launches $150 mn fund for SMEs

Religare, a diversified financial services company founded by Ranbaxy
Laboratories promoters, has launched a $150 million private equity fund
jointly with US-based advisory and investment firm, Evercore Partners.

The fund, registered in Cayman Islands as Evercore Religare GP and managed by Mauritius-based Evercore-Religare Investment Advisors, will target high-growth small and medium enterprises (SMEs) in retail, infrastructure and healthcare sectors with operations in tier-II and tier-III cities.

Evercore has put in $20 million as the sponsors commitment to the fund.
Religare would not invest any amount on its own as it does not make any
proprietary investments in any of its businesses.

"We would be looking for 10-12 deals in the range of $10-$20 million," 
Sunil Godhwani, CEO & managing director of Religare, said.

The private equity fund is part of Religare's plan to be present in every financial services segment. The fund will target SMEs in smaller cities as bigger financial services players are still to reach these places, Malvinder Singh, Ranbaxy promoter and chairman of Religare, said.

Religare has plans to enter insurance and asset management businesses and hopefully banking as the regulatory scenario is expected to ease at some point, Singh said.

Ranbaxy is already in talks with potential joint venture partners for its
foray into insurance business, company's officials, however, declined to name the prospective partners.

Religare, with its presence in equity broking, commodities broking and
fund-based financial services to investors and wealth management services through different subsidiaries, has a total of 2,500 people on its rolls in
200 offices at 180 locations across the country.