Private equity firm, ChrysCapital, has reached a first close of its seventh India fund, which was launched in September and has a target of raising $600 million.
The Mauritius-based firm managed to raise nearly $350 million by the end of December, quicker than what the fund had initially expected. India-focussed private equity funds raised $4.3 billion in 2015, the highest since 2011.
The strategy for the new fund will remain largely similar to that of its predecessor. Average investment sizes will be between $50 million to $60 million, in sectors such as healthcare, and services in the financial, consumer and business sectors, according to a report in the Asian Venture Capital Journal.
ChrysCapital had closed its sixth fund at $510 million in 2012, significantly smaller than its fifth fund, which had closed at $960 million in 2007. The corpus was later reduced by $300 million two years later, due to a weaker investment climate after the collapse of Lehman Brothers triggered a worldwide financial crisis.
In the last two years, the world has put the financial crisis behind it, but growth remains a concern in developed regions such as Europe, while China which long powered Asian growth, has slowed. However, India has been able to maintain a rate of more than 7 per cent, among the highest in the world.
ChrysCapital, which has a large exposure to publicly-listed firms, has been active in the last 12 months. It exited Mankind Pharma, after selling its stake to Capital International for $200 million, a nearly 10-fold gain. It also sold its stake in ING Vysya, doubling the $69 million investment it had made five years ago. New investments include buying Sequoia Capital’s 10 per cent stake in GVK Bio, a small stake in South Indian Bank and in US-based consulting firm Infogain.
Other private equity players are also actively raising funds. India Value Fund Advisors raised a $700 million fund, and Everstone Capital raised $730 million. Siddharth Parekh, the younger son of Deepak Parekh, chairman of India’s largest mortgage lender Housing Development Finance Corp, floated a $200 million fund. Venture Capital funds were at the forefront of fundraising as well, with a total of $2 billion getting raised by Accel Partners, Nexus Venture Partners and Sequoia Capital.