DSA SUMMIT: Everstone-backed Indospace to hit first close of $600m fund next week

Everstone Group’s industrial and logistics real estate development platform IndoSpace will make the first close of its third fund of up to $600 million next week, said Atul Kapur, co-founder and managing partner at Everstone Capital.

Speaking at the Asia PE-VC Summit 2017 of DEALSTREETASIA’s flagship annual conference in Singapore on Thursday, Kapur said, the first close is expected by September 27-28, and the final close by January 2018.

“We are targeting to raise 50 per cent of the fund’s capital in the first close. It will be the continuation of the series of funds. We will follow the same strategy we applied to the previous two funds,” Kapur added.

While he declined to disclose the name of the investors, a Mint story in May had reported that CPPIB will inject about $100 million in the third fund.

IndoSpace is a joint venture between Everstone Group and US-based Realterm. The platform has so far raised $584 million across two funds. Everstone is a private equity and real estate firm with a focus on India and South-east Asia, with over $3.3 billion of assets under management.

Besides, the private equity firm is also looking at extending its healthcare play in Indonesia. Asked about the kind of investments it would consider, Kapur said, “Healthcare systems are difficult in Indonesia – they are large scale, hospitals are big, and they trade at high multiples. So we would focus on segments such as medical devices distribution, healthcare delivery systems, pharma distributions, etc. These are highly fragmented businesses. In fact, there’s enough to do when it comes to healthcare business in Indonesia.”

Asked if it is also looking to extend its real estate presence in Indonesia, Kapur said, “Yes, because the characteristics are so similar. Our partner in Indonesia is the largest retailer in the country. They have very good access to warehouses and logistics.”