HK-based secondaries investor TR Capital opens office in Mumbai, its third in Asia

Paul Robine , Founding Partner and CEO of TR Capital

As it continues to deepen its focus on the Indian market, Hong Kong-based specialty secondary investments fund TR Capital has opened an office in Mumbai, marking its third in Asia.

According to an official statement, the Mumbai office team will report to Paul Robine, founding partner and CEO of TR Capital. The firm has relocated several team members and will continue hiring locally, it added.

TR Capital has been investing in India since 2008 with around 20 deals under its belt till date, its latest transaction being the successful exit from Indian e-commerce giant Flipkart last month. The firm exited its over three-year-old secondary investment in Flipkart Ltd via a share buyback valuing the Bengaluru-based company at $20 billion.

“The new office will allow us to closely work with our existing and potential investee companies. Private equity in India is maturing and the development of the secondary market is a natural consequence of the large volume of private equity investments during the past 15 years,” said Robine.

In a recent interview to DEALSTREETASIA, Robine had said that the company usually does two to four secondary direct and fund restructuring deals per year in India, which in aggregate corresponds to $100-125 million deployed per year in India.

In April, TR Capital announced the completion of two secondary direct investments in India, where it acquired a 10.5 per cent stake in non-banking finance company Arohan Financial Services, as well as buying additional stake in online eyewear firm Lenskart Solutions. Other Indian firms in its portfolio include Urban Ladder, Sedemac, SSIPL and Vivimed Labs (Uquifa).

Robine, in his interview, had pointed out that the market value of unrealised investments by private equity players between 2008 and 2012 in India represents nearly $50-65 billion that has to be sold in the next three years by all the funds reaching their life end.

“The amount of money raised by private equity funds in India between 2008 and 2012 was $50 billion: these companies are invested by PE funds that are today reaching their life’s end. What’s interesting is that the amount that was distributed to their LPs: this amount is less than $18 billion. That is precisely where we see a big opportunity…,” he said.

TR Capital was established in 2007 to invest in Asia-focused private equity secondary transactions and has executed 33 transactions via three funds: TR Capital I (2008), TR Capital II (2012) and TR Capital III (2016). It currently manages capital commitments of $400 million.

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