UK’s development finance institution CDC Group plc has made a commitment of $30 million to Renuka Ramnath-led Multiples Alternate Asset Management. CDC, one of the largest institutional investors in Indian PE funds, said it is backing Multiples Private Equity Fund I Limited which will focus on financial services, healthcare, infrastructure, shipping and retail.
Multiples had announced a first close at $250 million in April this year. The fund is targeting Rupee equivalent of $450 million (Rs 2,100 crore at current exchange rates) and plans to make typical investments at $20-30 million. Around 70% of the fund is expected to be growth capital deals and the remaining majority stakes or buyout deals.
Multiples is raising its fund in a dual structure, planning a mop-up from both international and Indian investors. Domestic investors include India Overseas Bank, Andhra Bank, LIC, Punjab National Bank, Sidbi, among others. Multiples also has a $100 million commitment from Canada Pension Plan Investment Board (CPPIB).
“The Multiples team has shown strengths as an investor and fund manager, as well as being a market leader, responsible for the first buy out of a company in India. Economic and political conditions continue to look good for private equity in India and the team’s experience and track record of adding value to portfolio companies should put it in a good position to strengthen India’s growing private sector,” said Anubha Shrivastava, CDC’s Managing Director for Asia.
CDC said it will help Multiples by providing “important guidance relating to the team’s structure and will ensure the fund’s procedures are in line with best international practice.”
CDC has committed over $1.1bn to funds investing in Indian companies since 2004. It has invested in the funds of ICICI Venture, then led by Ramnath who founded Multiples last year.