Asian Development Bank (ADB) said on Tuesday that it is backing mid-market Indian private equity firm True North (formerly India Value Fund Advisors) with an equity investment of up to $50 million (Rs 320 crore).
“Through its investment in True North VI, ADB will support market-leading businesses in India that require sophisticated funding solutions to realise their growth plans,†said Janette Hall, ADB's director of the private sector investment funds and special initiatives division.
True North VI is a closed-end private equity fund that aims to make up to 10 equity investments of between $50 million and $150 million each in the financial services, healthcare, and consumer sectors. True North may also target investments in technology products and services companies.
Although the development financial institution did not share more details about the fund, as reported by VCCircle, True North is believed to have hit the first fundraising milestone for its sixth fund that may set a new record for a sector-agnostic PE fund created for India.
The Mumbai-headquartered PE firm, which had set course for raising around $1 billion (Rs 6,450 crore) in its sixth outing, has managed to get commitments of close to half of the total target marking the first close, a person aware with the developments had told VCCircle earlier.
Bulk of the money being raised in this fund is expected to be utilised in control deals in the mid-market space in India.
Established in 1999, True North has successfully launched five separate investment funds with a combined corpus of approximately $2 billion.