Burman Family Holdings, the strategic investment platform of the promoters of fast-moving consumer goods (FMCG) major Dabur Group, is planning to build a syndicate of global investors to invest in growth-stage companies across sectors in India, according to a media report.
The syndicate is expected to have family offices, strategic investors and private equity funds as investors, Gaurav Burman, director Dabur India, told The Economic Times. The discussions for starting the syndicate are at an early stage, he said.
Burman Family Holdings, which has invested over $500 million in various businesses mainly in India, expects to manage the syndicate eventually.
An email query sent to Burman Family Holdings did not elicit a response till the time of filing this report.
The syndicate will seek to invest above $20 million for a minority stake in medium- to large-sized companies. It will explore opportunities in financial services, healthcare, consumer technology and internet sectors.
However, the syndicate will not invest in FMCG businesses to avoid a potential conflict of interest. The Burman family holds about 70% in Dabur.
"...any transaction or opportunity in the FMCG space is off limits for the family office and must go to Dabur. We have a strict policy in this regard," Burman told the financial newspaper.
Burman Family Holdings
The family office focuses on investments in early stage companies in healthcare, financial services, hospitality, education and media.
Its portfolio companies include credit information provider Experian, home healthcare provider Health Care at Home, private lender RBL Bank and insurance aggregator Easy-Policy. In 2015, the Burman Family Holdings also inked a pact with global quick service restaurant operator Yum! Brands Inc to come in as a franchisee partner for its QSR brand Taco Bell.
Early this year, Burman Family Holdings picked up stake in real estate private equity firm Cerestra Advisors Ltd.
Family offices have been increasingly investing in alternative investment space in India in the past years. Other prominent single-family offices in the country include Wipro founder Azim Premji's PremjiInvest, Infosys co-founder NR Narayana Murthy's Catamaran Ventures and Tata Sons emeritus chairman Ratan Tata's RNT Associates.