Mid-market focused private equity firm Frontline Strategy Ltd has launched its third fund targeting $150 million. The fund, christened Clove Route Fund. will look at growth capital and special situations deals in the $10 million to $15 million range.
Frontline Strategy, which has been active in the India PE scene for the last one decade, has raised two funds – Strategic Ventures Fund and India Industrial Growth Fund (which is in the investment mode). Frontline said in a statement that Strategic Ventures Fund generated a net IRR of 23%+ across nine exits. Some of the recent exits from Strategic Ventures Fund include Shilpa Medicare (4x returns) and Titagarh Wagons (5x).
Clove Route Fund would look at opportunities in growth capital, consolidation and special situations in sectors such as industrials, resources, healthcare, consumer, agricultural derivatives and technology.
Frontline’s first two funds were anchored by the Fabiani family office, promoters of Madrid-based realty firm Americorp Group. Its team is headed by Atim Kabra, founder and general partner and Supratim Basu, general partner. Harish and Kamal Fabiani will be venture partners in Fund III along with Raman Kumar, CEO of Cbay Systems Ltd (a former portfolio co). Frontline plans to add two more senior nvestment professionals to the team on the closure of Fund III.
Some of Frontline’s investments include CBay Systems, Astra Microwave Products, Alfa Transformers, Tejas Networks and Shriam SEPL Composites.