International Finance Corporation (IFC) plans to invest $10 million (around Rs 76 crore) in a new private equity fund of India Alternatives, the World Bank’s private-sector investment arm said.
IFC is also considering another $500,000 commitment to the India Alternatives Private Equity Fund II as part of its Women Entrepreneurship Finance Initiative, it said in a disclosure.
Shivani Bhasin Sachdeva-led India Alternatives had made the first close of the fund in August 2018 after raising Rs 250 crore from domestic institutions within a year of its launch. The fund has a total committed capital target of $70 million, IFC said.
The fund aims to pursue growth capital investments in small to mid-sized companies in India. IFC said it expects its investment will help improve access to private equity capital for small and medium-sized enterprises.
IFC has an active limited partner (LP) portfolio in India where it backs private equity and VC funds. It also makes direct PE-style investments and also lends to companies in the country.
In September last year, IFC said it was looking to invest $20 million in Chiratae Ventures’ new fund.
In August, it proposed placing $25 million in the second fund of healthcare-focussed private equity firm Quadria Capital. The Quadria Capital Fund II has a target size of $400 million and a hard cap of $500 million.
In May, IFC proposed to contribute $12 million to the Accion Quona Inclusion Fund.
In March, it proposed to come on as an LP in the debut venture capital fund of investment firm A91 Partners by putting in $25 million. The target corpus of the fund was pegged at $250-300 million.
India Alternatives has disclosed two investments from its second fund thus far. It had picked up a significant minority stake in a dermatology-focused healthcare company https://www.vccircle.com/india-alternatives-invests-in-dermatology-company for about $8 million last year and invested in National Securities Depository Ltd in 2018.
The PE firm had backed four firms from its first fund - Enamor, TransUnion CIBIL, Ideacount and Seclore. It exited Enamor last year when US-based buyout firm Advent International acquired the lingerie retailer.