Two joint venture private equity funds of Milestone Capital have invested a sum of Rs 75 crore ($17 million) in credit rating agency CARE (Credit Analysis & Research Ltd). Milestone Religare Investment Advisors (a JV with Religare Enterprises) and Capstone Investment Advisors (a JV with Money Matters Financial Services) have picked up a minority stake in a secondary transaction.
Major shareholders of CARE include IDBI Bank (26.75%), Canara Bank (23.67%) and State Bank of India 9.97%). The other shareholders include Federal Bank, IL&FS, ING Vyasa Bank etc. Last week, a subsidiary of Sundaram Finance said that it has sold its holding for Rs 67.48 crore.
CARE, a full service ratings company set up in 1993, has completed over 7000 ratings till end of last year having an aggregated value of over Rs 23,121 crore. The company provides services in areas like research besides ratings.
MAPE Advisory was the banker to the transaction.
The deal is the first investment by Capstone, which is raising a Rs 400-crore Special Opportunities Fund. Milestone Religare has already raised $118 million for its India Build-out Fund I, which is a domestic fund. For the fund, which has till now focused on healthcare education, this will be its fifth investment.
Milestone Religare has made four investments so far and these include IMS Learning Resources ($5 million), Krishna Institute of Medical Sciences ($13 million), Healthcare Global Enterprises ($6.75 million) and Resonance Eduventures ($13.5 million).