Faering Capital has announced the first close of its maiden private equity fund called India Evolving Fund at Rs 830 crore. According to a report in Dow Jones News Wire, quoting a statement, the firm will focus on consumption-related investment opportunities in India. Faering plans to target deals between Rs 35 crore and Rs 80 crore. The first close was achieved in December 2010.
Earlier reports said that Faering is promoted by Aditya Parekh and Sameer Shroff. Parekh, the son of HDFC chairman Deepak Parekh, has earlier worked with DSP Merrill Lynch and is an MBA from Wharton. The fund was targeting domestic investors including banks and financial institutions. The advisory board of Faering Capital will also reportedly include Deepak Parekh and Godrej group chairman Adi Godrej. More details about the promoters or the fund could not be ascertained.
Several private equity funds, especially players raising their maiden vehicles, have tapped the domestic limited partners as the global market remained tough for the last two years. Overseas LPs are becoming increasingly choosy on making commitments in the backdrop of global financial crisis, preferring general partners with track record.
Aditya Birla Capital Advisors closed its maiden fund Aditya Birla Private Equity- Fund I early last year at Rs 880 crore from doemstic investors. Reliance Equity Advisors Ltd, the private equity arm of Anil Ambani's Reliance Capital, also raised Rs 1,100 crore from domestic LPs before starting overseas fundraising. Other firms which tapped domestic LPs include Milestone Religare, Renuka Ramnath's Multiples, ICICI Venture's India Advantage Fund Series 3, among others.