The International Finance Corporation has proposed to invest $15 million (Rs 96.5 crore) in Faering Capital’s second fund.
Faering Capital is led by Aditya Parekh, son of HDFC Bank chairman Deepak Parekh, and Sameer Shroff.
IFC has committed to pooling money in Faering Evolving Fund III, which is Faering Capital’s vehicle to raise capital from overseas investors, IFC said in a disclosure.
VCCircle reported last year that Faering Capital had registered with the Securities Exchange Board of India (SEBI) to pool capital in this vehicle.
So far, Faering Capital has mostly raised domestic money. Its limited partners include Reliance Industries and HDFC, according to the company’s annual reports.
According to IFC, Faering Capital is seeking to provide growth capital to mid-market companies in India in sectors such as financial services, consumer products/services, healthcare and logistics.
Faering Capital’s is aiming to raise $200 million though it has a hard cap at $250 million for its second fund, IFC said.
The firm’s first fund had a corpus of around $183 million and had made investments in Utkarsh Micro Finance, Yellow Diamond chips maker Prataap Snacks Pvt Ltd, fin-tech startup TranServ, Avantha Power & Infrastructure, Gokaldas Intimatewear, Manipal Health Enterprises and Linkstreet Learning, according to VCCEdge, the data research platform for VCCircle.
Late last year, Paragon Partners, which was founded by Siddharth Parekh, brother of Aditya Parekh announced the final close of its maiden fund at $120 million.
Multiples Private Equity is also on the road to raise a new fund, as reported earlier this year.