US pension fund TIAA buys stake in social impact investor Aavishkaar-Intellecap
Photo Credit: VCCircle

Pension fund Teachers Insurance and Annuity Association of America (TIAA) has invested around $32 million (Rs 230 crore) for about 20% stake in social impact investor Aavishkaar-Intellecap Group.

As part of the deal, Nuveen, the investment management arm of TIAA, has invested in the holding firm of Aavishkaar-Intellecap Group. Nuveen has earlier come in as a limited partner in the funds of the social impact investment firm.

The social impact investment firm will use the investment to boost its stake in subsidiaries, founder Vineet Rai told The Economic Times. Besides debt-funding vehicles under microfinance lender Arohan, non-banking financial company IntelleGrow and fin-tech platform Tribe, Aavishkaar-Intellecap has other businesses – equity investments under Aavishkaar Venture Management Services and advisory services under Intellecap.

Emails to Aavishkaar-Intellecap and TIAA did not immediately get a response.

TIAA provides financial services in the academic, research, medical, cultural and government fields. As on 30 September, it had $1 trillion in assets under management. Nuveen, which was acquired by TIAA in 2014, has over $900 million in assets under management.

Last year, Aavishkaar-Intellecap Group had raised $25 million (about Rs 170 crore) in an equity funding round led by Triodos Investment Management and Shell Foundation.

Aavishkaar-Intellecap Group

Founded in 2002, Aavishkaar-Intellecap Group helps entrepreneurs via equity funding, venture debt, microfinance, investment banking intermediation, consulting, research and access to global networks.

Last month, managing partner and chief executive Vineet Rai had said that Aavishkaar Venture Management Services Ltd was planning to raise $300 million (Rs 2,100 crore) for a new fund to invest in Southeast Asian countries. This fund will be its eighth so far and will add muscle to its $75 million Frontier Fund, which is focused on South and Southeast Asia.

The social impact investor is also raising money for two other vehicles--the $200 million domestic Aavishkaar Bharat Fund and a $150 million Africa fund.

Aavishkaar Bharat Fund has made two investments so far, in Utkarsh Micro Finance and Kottaram Agro Foods.

In November 2017, the investment firm hit the first close of the India fund at $95 million (Rs 620 crore) and is targeting to mark the final close at $200 million.

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