PE Firm India Value Fund Advisors Raises $500 Mn, Seeks Total Corpus Of  $700 Mn

Private equity firm, India Value Fund Advisors (IVFA), raised $500 Mn (INR 3,130 Cr) to close its new fund Indium-V. Going forward, IVFA plans to complete the fundraising within three months with a total corpus of $700 Mn. The new fund will follow the same strategy of minority as well as control investments.

IVFA also led a new $80 Mn funding round in Magma Fincorp, along with Leapfrog and existing investor in the NBFC, KKR. This deal was routed through the new fund Indium-V.

Vishal Nevatia, managing partner at IVFA said, “This mandate is a vindication of our strategy of working closely with mid-market firms and supporting them through business cycles and the unique challenges of the Indian market.”

Prior to this fund raised, India Value Fund was investing out of IVF-IV, which had a corpus of $600 Mn. The firm has raised $35-$600 Mn in the subsequent years since 2005.

The other PE funds that closed during this year include, Everstone Capital, Fairbridge Capital, Creador Capital and CX Partners, mopping funds ranging from $150 – $500 Mn. However, Infrastructure-focused fund from IDFC Alternatives was the largest fund raised.

Apart from the PEs, there were about six venture funds that raised funds including $530 Mn by Sequoia Capital and $250 Mn by IDG Ventures India. Among the special situation funds, Aion Capital managed to close a distressed fund of $825 Mn.

Established in 1999, IVFA is focused to invest in mid-sized businesses in the consumer, healthcare, food, IT/ITES and financial services sectors, transforming them into world-class industry leaders. Its four separate investment funds have a combined corpus of over $1.2 Bn. IVFA has invested around $800 Mn across 26 Indian businesses. The recent investment of $50 Mn was in a radio taxi service provider, Meru, holding a majority stake. Presently, IVFA has a team of 25 investment and operating professionals with experience in, across investment and advisory services.

Observing the trends of homegrown startups that have attracted investment interest from global LPs, several PE and VC firms are on the road to raise new funds. Besides, Indian Government is also promoting startups and working towards improving the ease of business. Of lately, VC firm Accel Partners raised $305 Mn for its India-focussed fund. The other sector-agnostic PE funds are also close to raising its second fund with a target of $500 Mn.