Vanguard Management Corp has formed a partnership for business development with India-focused private equity fund Genesis Venture Fund India I, LP. The business unit of Vanguard Minerals Corp will provide ongoing business development and strategic management consulting services to Genesis portfolio companies. Vanguard will also assist with opening new markets for portfolio company services in India and Sri Lanka.
The portfolio of Genesis, which is based out of US, comprises education companies in India. They include tutoring services provider Firefish, English learning company EnglishBook and education infrastructure and training company and E-Convergence Technologies. Genesis portfolio also includes Candy, Sri Lanka-based Springfield Schools, where it has invested $500k for at least a 20% stake, according to its website. Springfield is planning to the rest of Sri Lanka, Southern India and beyond.
Genesis plans to create a portfolio of 4-6 private companies and taking each public in the United States, by means of a direct public offering, according to its website. The fund size or outlay of Genesis could not be determined.
Vanguard will provide the consulting services for a term of 24 months. Genesis will be issued 125,000 common shares of Vanguard as part of the transaction in exchange for 15% of the limited partnership interests in Genesis that will be issued to Vanguard. Genesis will also pay Vanguard up to $250,000 in cash milestone payments based on the performance of consulting services.
Jim Price, CEO of Vanguard Management Corp, currently owns 20% of the limited partnership interests in Genesis and also serves as its managing director.
"Genesis has been actively developing relationships with emerging growth companies in India since 2005. As I have worked with Genesis, I have seen the potential synergies that the Vanguard team could bring to the Genesis portfolio companies," said Price in a release.