Unicap eyes first close of maiden MSME-focused fund at $8M in four months

Unicap eyes first close of maiden MSME-focused fund at $8M in four months

By Bhawna Gupta

  • 11 Nov 2013

Unicap Advisory is looking to hit first close of its maiden investment fund targeted at micro and small & medium enterprises (MSME) at Rs 50 crore ($8 million) by March 2014, according to the investment firm.

The firm claims it has already got commitment of Rs 20 crore ($3.15 million) from HNIs and unnamed domestic fund-of-funds. This comprise a tenth of its targeted corpus of Rs 200 crore ($31.5 million) for Unicap Venture Fund – I.

Unicap plans to invest Rs 2-5 crore in a single company from its sector-agnostic fund which would seek to invest in any sector excluding real estate. It would, however, chase deals in asset-light industries in MSME sector, including IT/ITeS, logistics, service oriented companies, including media besides those into trading.

“Raising capital in the current economic scenario is a challenge for MSMEs as the PE players look for significant-sized companies, while banks and debt lenders require collaterals. At Unicap Advisory, we aim to offer customised solutions to such MSMEs, by bridging this gap of capital requirement by investing equity/mezzanine capital," said Sagar Khurana, director of Unicap.

Khurana was earlier working with Avista Advisory Associates Pvt Ltd in Mumbai and has over a decade of experience in asset management, corporate finance, business consulting and capital markets.

He is also an independent director at Sage Global (Delhi-based export house), independent financial advisor at HD Metals & Minerals (Mumbai-headquartered metals trading group) and independent financial advisor at PR Genes.

Founded in 2001 by Khurana family, Delhi-headquartered Unicap Advisory is a mid-market financial services boutique firm which is engaged primarily in asset management, corporate finance, business consulting and capital markets.

(Edited by Joby Puthuparampil Johnson)