The Asian Development Bank (ADB) has made its second Limited Partner (LP) commitment this month with a $10 million (Rs 73 crore) infusion into Tata Capital Growth Fund II.
Earlier this month, VCCircle reported that ADB had returned as an LP in healthcare-focused OrbiMed.
Two years ago, the publication had reported that the Manila-based multilateral lender was to invest in the funds of two India-related firms.
In January 2018, ADB invested $50 million in private equity True North’s sixth fund.
Then the lender was looking to back at least one Indian PE fund every year.
In December 2020, the development bank signed a $40 million loan for Northern Arc Capital.
Last year in September, ADB decided to invest $15 million in Avaada Energy Private Limited.
The bank, established in 1966, makes both equity and debt investments, predominantly in South Asia and Southeast Asia. It has 67 member nations, of which 48 are from the Asia-Pacific.
Tata Capital Growth Fund II
The vehicle is a PE fund targeting growth capital investments in middle-market companies in India, including small and medium-sized enterprises (SMEs).
The fund aims to invest in 8 to 10 companies in sectors including financial services, health care, manufacturing, and technology. The fund’s investment size is expected to average between $10 million and $35 million.
The fund manager, Tata Capital Limited, has agreed to take steps to promote gender equality through the vehicle’s investments, ADB said in a statement.
Launched in 2017, Tata Capital Growth Fund II is sponsored and managed by financial services firm Tata Capital Limited, a subsidiary of Tata Sons Limited, which is the flagship company of the Tata group.
Founded in 1868, the Tata group is a conglomerate in India. It comprises more than 100 companies operating in over 40 industry sectors, across six continents, and in over 80 countries.
This week, Tata Capital Growth Fund II announced the final close of its fundraise at Rs 1,250 crore (about $170 million).