Warburg Pincus, StanChart PE, Avigo Capital in race to infuse funds in Enzen Global
Private equity firms Avigo Capital, Standard Chartered Private Equity and Warburg Pincus have emerged as frontrunners for a $50 million round of capital infusion in Enzen Global Solutions, a Bangalore-based consulting and services company catering to the energy and utilities market, at least two sources briefed with the matter told VCCircle. The deal, which is expected to be a combination of primary capital infusion and secondary sale by the existing investor, is likely to be concluded latest by January, 2013.
In 2008, Monsoon Capital, an alternative asset manager focused on emerging markets, primarily Asia and India, put Rs 40 crore as the first round of funding in the company.
Founded by Satheesh Kumar, who earlier managed Wipro's utilities business in the UK and overseas, Enzee Global Solutions is essentially into the business of energy management. According to an earlier report in Hindu Business Line, Enzen has grown into a 2,000-strong company with 80 public and private utilities as clients and clocked an annual turnover of Rs 200 crore in the last fiscal, which is set to double this year. Its business portfolio includes consulting, strategy formulation and design, development and implementation services and enhancing productivity at optimised cost.
"Energy solutions has to be sustainable, not necessarily low-cost. You can’t save energy by mere installations. It requires innovative re-thinking of processes, systems, people or supply patterns that make the difference. Enzen has exhibited value through redesign of value chain inefficiencies," said one of the bankers in know-how of the matter.
Enzen is primarily active in India and Europe and is looking to enter the US market by acquiring a niche company there, according to a recent report in Business Standard. Some amount of capital raised will also go for the acquisition, added one of the sources.
E-mails sent to Satheesh Kumar, CMD, Enzen Global and spokespersons of the contending private equity firms did not elicit any response till the time of publishing this article.
In the background of a growing economy, India’s energy demands are expected to outpace its supply. Key drivers for this imbalance include an expanding middle class and limited domestic hydrocarbon resources. Recognising such potential, foreign investors and private domestic players are filling the supply void through infrastructure expansion, introduction of renewable energy source and investing into energy efficiency companies.
Some such recent deals include Husk Power Systems Inc, a renewable energy startup engaged in rural electrification and power generation, raising $5 million (Rs 27 crore) in a Series A round of funding from existing investors Bamboo Finance, Acumen Fund and LGT Venture Philanthropy and Hyderabad Angels leading Series A investment in Green India Building Systems and Services Pvt Ltd (Green India Building), an energy efficiency products and solutions company among others.
(Edited by Prem Udayabhanu)
Monsoon Capital LLC is a private investment management firm with $445 million assets under management. It seeks to invest in small and mid-sized publicly traded companies operating in India. The firm follows a sector agnostic approach of investing with preference on real estate, agriculture, automobile and manufacturing sector. The company was founded in 2004 and is based in Bethesda, Maryland. with additional office in Singapore. Suyash Advisors Pvt. Ltd. acts as the investment advisor to Monsoon Capital.
Avigo Capital Partners Pvt. Ltd. is a private equity firm with over $365 million assets under management. It provides growth capital for acquisitions and buyouts to SME companies in the industrial sector in India. The firm seeks to invest in engineering and manufacturing, infrastructure, education, media, healthcare and industrial service sectors. The firm seeks to invest between $5 million and $20 million in its portfolio companies. The company was founded in 2003 and is based in New Delhi, India.
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Enzen Global Solutions Pvt. Ltd. is engaged in providing power related solutions to energy and utilities industries. It offers solutions and services for utilities across power, water, gas and clean energy verticals. It also offer turnkey solutions for design, supply, construction, cabling, installation, servicing, testing and commissioning of transmission and distribution projects as an integrated solution provider. The company was founded in 2006 and is based in Bengaluru, Karnataka.