India: PE firm Paragon Partners reaches first close of $200m growth fund at $50m

Siddharth Parekh has already invested in start-ups as an angel investor in his personal capacity. Photo: Mint

Private equity firm Paragon Partners has raised $50 million at the first close of its $200 million growth fund, PPGF-I aimed at investing in mid-size companies.

Founded by Siddharth Parekh and Sumeet Nindrajog, Paragon Partners, through its PPGF-I fund plans to invest in 10-15 mid-market companies in India with an average deal size of $10-20 million.

It will focus on five core sectors, including consumer discretionary, financial services, infrastructure services (capex light), industrials and healthcare services, Paragon Partners said in a statement.

“We believe the next decade in India will see a strong resurgence of growth in key sectors such as manufacturing, financial services and infrastructure. Paragon Partners aims to become the capital provider of choice in these sectors, which form the backbone of the Indian economy,” Paragon Partners Co-Founder Siddharth Parekh said.

The firm also announced the completion of the funding of $10 million in Mumbai-based EPC company Capacit’e, through which PPGF-I will get significant minority stake in the company.

Capacit’e is engaged in the construction of buildings (including super high rise structures) and factories, for large real estate developers, corporates and institutions.

Paragon Partners has recruited a team consisting of six investment and operating professionals and a CFO, with several years of India private equity experience, the firm said.

The Advisory Board of Paragon Partners includes HDFC Chairman Deepak Parekh, Marico Chairman Harsh Mariwala, SPM Capital Advisors Chairman Sunil Mehta and Ex Sr. Partner at Ares Private Equity Jeff Serota among others.

PPGF-I has seen significant interest from onshore and offshore institutions, family offices and HNI’s, the PE firm said. Domestic investors include India Infoline, Edelweiss Group and Infina Finance Private Limited (an associate of Kotak Mahindra Bank Ltd). The fund has also received a significant commitment from the Fairfax group based in Canada.

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