2i Capital raises $60 million for India

The Bangalore-based private equity firm is targeting $200 million for its second India-focussed growth fund.

2i Capital, an India-focussed private equity fund manager, has raised $60 million (€38 million) for the first close of its Indian Enterprise Fund, which is targeting $200 million.

Sudhir Kamath, managing director of 2i Capital, told PEO that $60 million has been raised from overseas investors including two family offices, one corporate and a fund of funds. The firm wants to have a final close by the end of the year, he said.

Kamath said that the Indian Enterprise Fund is sector-agnostic. “What we are basically looking for is good management teams,” he said.

The fund will invest in mid-sized companies operating in various segments of high growth consumer or industrial markets. Vivek Sekhar, chief executive officer of 2i Capital, said in a statement: “We identify companies that are in strong and growing sectors, which have stabilised their operations, have a good market share, growing margins, have competitive and defensible business models, and are now capable of a next phase of rapid growth.”

Indian Enterprise is the firm’s second fund. 2i Capital’s previous fund also closed on $200 million and made growth capital investments. So far, 35 percent of the firm’s investments have been made in the manufacturing and engineering sector, 27 percent in energy and infrastructure, 14 percent in telecom and technology, 13 percent in consumer and capital goods, and the remainder in leisure and travel, and logistics.

Kamath said some of the firm’s past transactions in India include Titagarh Wagons, a rail wagon manufacturer; Idea Cellular, a mobile services operator; XL Telecom & Energy (formerly XL Telecom), which manufacturers mobile handsets, solar photovoltaic systems and produces ethanol; Gayatri Projects, a construction company; and Pipavav Shipyard, a shipbuilding firm.

2i Capital, which was established in 2000, is headquartered in Bangalore and has an investment team of three.