World Bank’s International Finance Corporation (IFC) said on Monday it will invest up to $40 million (Rs 296 crore) in the third fund of Baring Private Equity Asia’s India-focused credit platform.
The investment will be capped at 20% of the $500 million that Baring Private Equity Asia aims to raise for the fund, IFC said in a disclosure.
The World Bank arm said that the fund will invest primarily in senior debt instruments of companies that are either based in India or have substantial operations in the country.
The focus will be on increasing access to credit for mid-market companies in India, especially low-income states, IFC said.
In January 2020, VCCircle reported that the India-focused credit platform of Baring Private Equity Asia is about to hit the road to raise its third fund.
In December 2020, people told The Economic Times that a large North American pension fund has become the fund’s anchor.
Baring Private Equity Asia India Credit was set up under parent company Baring Private Equity Asia in 2016 to explore the growing debt market among large and mid-sized Indian companies.
Baring Private Equity Asia has 39 portfolio companies across Asia, with a total of more than 230,000 employees and sales of about $32 billion.
IFC, which has an active LP (limited partner) portfolio in India, also makes direct private equity-style investments and lends to companies in the country.
It said last week it would invest $25 million in the fourth fund of Jungle Ventures, an early-stage venture firm focused on Southeast Asia.
Separately, edtech platform focused on higher education upGrad was in advanced talks with IFC to raise $40 million at a valuation of $850 million.