Bahrain-based Investcorp, which has so far invested $500 million across private equity and real estate deals in India, plans to expand its presence with $2 billion in assets under management (AUM) over the next few years, said senior executives of the firm in an interaction with Mint.
To achieve the target, Investcorp is set to launch a new private equity fund with a target corpus of $400 million in 2022.
“We have a real estate and a private equity business in India. We have now invested in 12 companies in the private equity space in India and the pace of investments has increased during the pandemic. We have deployed around half a billion dollars between real estate and private equity. Our target now is to quadruple our AUM from half a billion to $2 billion. We want to raise more money from the local market and global markets for our investment in India,” said Mohammed Alardhi, executive chairman, Investcorp.
Investcorp, which entered India in 2017 with the acquisition of funds managed by IDFC Alternatives, manages $37.6 billion of assets across 12 countries in North America, Europe, the Middle East and Asia. “In Investcorp’s journey, we initially like to build a track record and get traction first. So, all the capital so far has pretty much come from outside. Our plan is to, in 2022, start launching products based on that track record that we’ve already established with things that we’ve done to gain people’s trust. We’re looking forward to raising capital from India, starting next year,” said Harsh Shethia, head of India business, Investcorp.
“Across all the products one of our philosophies is, if you really want to be local, you have to get local buy-in, because the ecosystem helps us in so many different ways, whether it’s deal sourcing or whether it’s being well connected to the network beyond investment teams. So I would say every product that we’re looking at, we are looking to see how we can have participation from Indian institutions as well as family offices,” Shethia said.
The firm’s earlier private equity fund raised ₹1,000 crore. It has also made significant investments from its balance sheet in many consumer tech companies. Its investment include InCred (fintech), Zolostays (shared economy residences), Citykart (retail), ASG Eye Hospital (healthcare), Bewakoof (lifestyle fashion), NephroPlus (healthcare), Unilog (eSaaS) and Safari Luggage, among others.
With its planned $400 million fund, the firm will also write larger cheques of $25-50 million. “There is a little bit of an increase in equity checks that we’re looking to write. However, the market has grown and businesses have grown. So when you take that $25 million to $50 million check size naturally, the $400-odd million fund would be the appropriate target, but we are just in the initial stages at this point in time. We’re evaluating a strategy and we will finalize it closer to Q1 of next year,” Shethia said.
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