Singapore-based private equity group Everstone is seeking to raise as much as $950 million for its fourth fund that will back companies in India and Southeast Asia.
International Finance Corporation (IFC) is considering an investment of up to $50 million in Everstone Capital Partners IV and its parallel vehicles (ECP IV), it said in a disclosure. IFC’s commitment will not exceed 20% of the fund’s total committed capital and a co-investment envelope of up to $10 million, the World Bank Group’s investment arm said.
ECP IV will largely back companies that have significant operations in India and make opportunistic investments in Southeast Asia. The fund will be sector agnostic with a primary focus on healthcare, pharmaceuticals and technology services, in addition to consumer and financial services sectors, according to the IFC disclosure.
Founded and co-led by Sameer Sain and Atul Kapur in 2006, Everstone closed its third private equity vehicle at $731 million. Everstone Capital Partners II, a 2010 vintage fund, and Indivision India Partners (Fund I), a 2006 vintage fund, had amassed a total of over $1 billion in capital commitments.
DealStreetAsia reported in August last year that Everstone would raise the fourth fund with a target of around $1 billion, larger than its predecessor.
“[B]igger cheques in more mature companies are in our view a better risk-reward; they have better management teams and have more runway to do things with,” Everstone co-founder and CIO Kapur had then told DealStreetAsia.
The firm manages more than $5 billion across private equity, real estate, green infrastructure and venture capital funds.
In terms of private equity assets, Everstone picks control and minority stakes and makes platform investments. It recently exited Indian bakery brand Modern Food and Singapore-based customer experience solutions and technology company Everise.
In December 2020, Everstone reached an agreement to acquire Calibre, a specialty ingredients player focused on the pharmaceutical, nutritional and personal care segments. In Jan 2020, it invested in Indian non-banking finance company Indostar Capital Finance Limited, and Slayback Pharma, a pharmaceutical business with operations in India, the US, and Europe.
Everstone is also an investor in venture capital funds managed by DSG Consumer Partners – a backer in hotel management company OYO, fintech MSwipe, online restaurant reservations platform Chope, online grocery startup Redmart and others.
In the real estate space, Everstone operates IndoSpace Logistic Parks, a joint venture with global logistics real estate investor GLP, to invest in India’s industrial and logistics assets.
Meanwhile, EverSource Capital is a joint venture between Everstone and UK-based renewable energy manager Lightsource BP to make green investments in India.