Navis Capital, a firm specializing in making private equity investments in growth-oriented buyouts in South and Southeast Asia, has closed its sixth fund at $1.2 billion, according to a press statement.
The latest round succeeds its $1-billion Navis Fund V which it closed in 2007. The specific corpus for allocation in India was not known. Navis follows a highly integrated global network approach where all the partner firms of Navis spread across various geographies invest out of the core global fund, and do not house geography-focused independent funds.
About majority of the commitment comes from Asia for the latest fund. Navis VI comprises commitments from a diversified group of investors based in Asia (31% of capital commitments), Europe (31%), North America (29%) and other regions including the Middle East (9%).
Nick Bloy, Managing Partner of Navis, commented: “We exceeded our target in the most challenging fundraising conditions Navis has ever experienced. The level of support shown by those of our existing investors who were in a position to make investments has been very encouraging. We also welcome a number of additional high quality new investors with whom we look forward to working in the coming years.
The fund has invested in India Hospitality Corporation (IHC), Nirula's and Mars Restaurant (Exited to IHC in 2007). Its other investments in India include ITM Trust, a tertiary & executive education service provider and BSE-listed lubricants manufacturer Sah Petroleums. The fund currently manages $3 billion in assets under management.
Other global funds which make investments in India and have had fund closes recently are: DFJ which closed its tenth fund at $350 million, New Enterprise Associates which raised $2.5 billion, and Norwest Venture Partners which closed its eleventh fund in the fourth quarter after raising $1.2 billion.
According to a recent report by Emerging Markets Private Equity Association (a non-profit, independent, global industry association for PE & VC investing in emerging markets), fund-raising for emerging markets-dedicated private equity funds slowed in 2009, but investment activity was comparatively strong. Emerging markets captured 9% of global private equity fundraising and 26% of global private equity investment, with deal activity by transaction volume down by only 11%
There are a host of funds from India out on the road for fundraising. In 2008, global funds with Asia as one of their economies raised capital of $44.3 billion, according to data from VCCEdge. Last year, $46.3 billion changed hands in which funds only focusing on India mopped up close to $4.2 billion in 2008 and about $2.9 billion in 2009. The latter months of 2008 and the first quarter of 2009 were rather testy.