Motilal Oswal Private Equity Advisors has made a final close of its mid-cap companies focused fund, India Business Excellence Fund-II (IBEF-II) at $155 million (Rs 1,000 crore), the company announced on Wednesday.
VCCircle was first to report that the firm has closed its second fund.
The fund has been raised from a mix of international investors (who committed $105 million) and domestic investors ($50 million or around Rs 325 crore). A significant portion of the capital has been raised from institutional investors, including several marquee international institutional investors.
IBEF-II would invest in 12-15 mid-market firms which means it would chase investments in the $10-13 million range, given the size of the fund. This would imply it is pushing up the lower investment band of $5-15 million in the first PE fund.
IBEF-I has invested in 13 companies across sectors like food processing, bulk packaging, power transformers, power infra enablers, EPC, engineering goods, ITES, financial services, EMS, auto components, etc. IBEF-I had raised Rs 550 crore in 2007 and has already returned 40 per cent capital back to its investors.
The new fund will primarily focus on unlisted companies with preferred themes of domestic consumption, financial services, healthcare and niche manufacturing and infra services.
"We reiterate our strong commitment to find highly appealing investment opportunities across India and deliver superior returns to our investors. We will continue to remain highly disciplined and rigorous in investment evaluation,” said Vishal Tulsyan, CEO of Motilal Oswal PE.
Motilal Oswal PE also manages a Rs 200 crore real estate fund besides the mid-market PE funds.
(Edited by Joby Puthuparampil Johnson)