Southeast Asia and India-focused private equity (PE) firm Creador Capital Group is in the process of investing into three companies, one each in India, Indonesia and Malaysia, top executive of the company told DEALSTREETASIA.
“While there are several deals in the pipeline which are on initial stages, currently we are looking at three deals actively where we have some kind of understanding with the entrepreneurs,” said Anand Narayan, senior managing director (MD) at Creador Advisors India Pvt Ltd (an advisor to the fund), and he added that ‘if everything were to go on well, the fund expects to close these deals in the next 2-3 months’.
The company focuses on three geographies- India, Malaysia and Indonesia and recently added Sri Lanka and Philippines.
The PE firm whose recent bets include healthcare and banking sector, said it will invest in a hospital chain in Indonesia, and lending businesses in India and Malaysia,
Narayan did not disclose specific details about these investments but said that the PE firm would pick minority stake in two of these companies and majority stake in the remaining one.”
In an interaction with DEALSTREETASIA, Narayan said, the company continues with its investment strategy and is always ready to adopt changes from time to time as per the investment environment and the opportunities presented. It looks at businesses that are growing whether it is an early-stage growth or late-stage growth company and typically look at the ballpark of equity value Rs 1,000-7,000 crore.
All the three investments will be done through its new fund- Creador III which market sources indicated that it intends to close at $450 million. Creador’s total assets under management (AUM) is at around the $1 billion mark.
Founded in 2011 by former ChrysCapital managing director Brahmal Vasudevan, its India advisory team includes Anand Narayan, who joined from boutique investment firm Veda, while the members of its advisory team include Akash Jain, ex-principal at Peepul Capital; Anand Raghavendran, who joined from investment bank Allegro; Vivek Tulshyan who has worked with Edelweiss Financial Services, Robin Agarwal, an ex-Thomas White Global Funds executive and Robin Agarwal, an ex-Thomas White Global Funds executive and Anuj Khandelwal, ex-IDFC
In India, early this year, Creador had invested around Rs 130 crore in City Union Bank and recently backed healthcare firm Corona Remedies Pvt Ltd. The other investments in India include in the companies like Somany Ceramics, PC Jeweller, Vectus Industries and Ashiana Housing.
Last year, the PE firm closed two deals each in India, Indonesia and Malaysia.
Its Malaysian portfolio includes data and analytical tools provider CTOS Holding Sdn Bhd, medical and allied health education provider Asiamet Education Group Berhad and retail pharmacy chain RedCap Pharmacy. In Indonesia, it has picked stake in the companies like financing firm BFI Finance, TV operator MNC Sky Vision and cereal player Simba Indosnack Makmur.
“There is no fixed allocation to a particular geography from the new fund, as in the earlier funds, Creador will make investments as and when it will opportunities look sensible,” Narayan added.
Talking about its exits, Narayan said: “I don’t think the fund is looking at exiting anytime soon from its portfolio companies in India. As and when it decides, it will go through a process to realise the best value.” Till date, it has made two full exits from its portfolio firms in India- financial services firm Cholamandalam Finance and housing finance company Repco Home Finance Ltd and realised 3.4x in USD terms.