• Home
• News Article

Evolvence rolls out $400m fund focused on India

Thursday, Jul 22, 2010

Gulf News

Targets institutional, high net worth investors

Dubai Evolvence Capital , a Dubai-based alternative investment firm, has launched a $400 million (Dh1.4 billion) India-focused private equity fund.

“Evolvence India Fund II is our third India focused fund. Like in the case of Evolvence Fund I, we expect to raise 50 per cent of the fund from institutional investors and high net worth investors in the Gulf and the remaining from the rest of the world,” Ajit Kumar, Managing Director of Evolvence India Fund told Gulf News.

Evolvence India Fund II, a Mauritius registered private equity fund of funds aims to make select investments in the mid-market growth capital segment in the Indian private equity market, through fund investments, co-investments and direct investments. This new fund from Evolvence Capital follows the successful closing of Evolvence India Fund I in 2007 and Evolvence India Life Sciences Fund, a healthcare and life sciences fund in 2008.

Potential

“Our investors recognise India’s potential, and we strive to offer them exceptional returns by identifying attractive investment opportunities in the country. The new fund from Evolvence Capital will be focused on the mid-market growth segments, ” Khaled Al Muhairy, Chief Executive Officer of Evolvence Capital said in a statement.

Evolvence Capital will commit up to 7 per cent of the fund as capital. The company expects to close the fund within next 12 to 18 months and deliver about 25 per cent return. The new fund has a relatively low hurdle rate (the minimum rate of return required before the profits are shared) of 8 per cent.

Evolvence India Fund II plans to replicate the proven strategy in the case of its first and will invest with high quality private equity fund managers and established entrepreneurs in India and will make selective investments in secondary private equity opportunities.

“In the case of our first fund, investments have been deployed across 10 funds and 8 co-investments. In addition, the management team has invested $50 million on behalf of investors in side pocket transactions. We plan to follow a similar strategy for the new fund,” said Kumar.

Evolvence Capital expects to attract investments from Gulf institutional investors and sovereign wealth funds to India.

According to recent estimates India is projected to attract $70 billion in private equity investments this year and this figure is expected to grow by more than 25 per cent by 2012. According to a report by PE firm Coller Capital and the Emerging Markets Private Equity Association (Empea), about 57 per cent of Limited Partner investors surveyed plan to accelerate their new commitments in emerging markets such as China, India and Brazil, over the next two years.

18

months expected ?duration of the fund offer

$70b

India’s projected private equity investment

25%

projected growth rate ?of private equity ?investments this year

By Babu Das Augustine?Deputy Business Editor

© Gulf News 2010. All rights reserved.

---

© Copyright Zawya. All Rights Reserved.

---