Investcorp raises $142m for its first Indian private equity fund

The company has invested $39m of the fund so far in four companies

Since 2001, Investcorp has invested more than $1.5bn in technology businesses worldwide. Courtesy Investcorp

Investcorp, the Bahrain-based alternative investment manager, raised $142 million (Dh521.1m) for its first-ever private equity fund in the country, as it looks to expand its portfolio of investments in Asia’s third-largest economy.

Investcorp has managed to close its maiden private equity (PE) fund within a few months of establishing its presence in India, the firm said in a statement to Bahrain Bourse, where its shares trade.

Investcorp has so far invested $39m of the fund in four companies: Incred ASG; Zolo; and Citykart. It has a strong pipeline to deploy the balance capital over the next 18 months or so and will look to more investment opportunities in consumer, financial services and healthcare sectors, it added.

The partners of the PE fund include Indian banks, insurance companies, family offices and international fund of funds, it noted.

“Our investors have been looking for a strategy/investment solution through which they can participate in the growth story of India,” said Rishi Kapoor, co-chief executive of Investcorp. “The fact that we were able to close our maiden India fund offering ... in a few months is testament to investor confidence in our market entry approach and investment strategy for India.”

Investcorp entered the Indian market last year through the acquisition of the PE and real estate funds businesses of IDFC Alternatives. The launch of Investcorp India Asset Managers and the opening of its eighth office in Mumbai is part of Investcorp’s overall growth strategy and global expansion plan.

Investcorp, in which Abu Dhabi's Mubadala Investment Company holds a 20 per cent stake, has been on an acquisition spree as the firm aims to double assets under management in the next three years. Established in 1982, the company is one of the oldest Middle East private equity firms and currently manages about $27 billion of assets across private equity, real estate, absolute return investments and credit.