Creador backs Indian home loans provider

RHF was founded in 2000 and is headquartered in Chennai, Tamil Nadu. The company provides home loans across South India and adjacent areas, with 74 branches in eight states and one union territory.

RHF's loan portfolio stood at INR31 billion as of September 2012, having posted compound annual growth of 41% since March 2008. For the six-month period ended September 2012, net profit was INR356 million. This performance reflects rapid expansion in India's housing finance sector as a whole. Outstanding loans were INR6.6 trillion in 2011, spurred by CAGR of 17.5% over the previous four years.

"Creador has been impressed with [RHF's] unique proposition in providing mortgages to an underserved market as well as the quality and track record of the management team," said Anand Narayan, senior managing director at Creador Advisors India.

This is the private equity firm's second investment in India's financial services sector, having previously committed capital to Cholamandalam Investment & Finance. There have been three other deals out of Fund I: Malaysian restaurant chain Old Town White Coffee; Indonesian pay TV company MNC Skyvision; and most recently, Indonesian cereals and snack foods producer Simba Indosnack Makmur.

The fund reached a final close of $132 million last month. It began investing shortly after the first close of $80 million in December 2011, hence the rapid deployment. Creador CEO Brahmal Vasudevan told AVCJ that plans are already being put in place for a second vehicle, with a target closer to the $300-350 million that was originally envisioned for Fund I.

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• Topics
• South Asia
• Expansion
• Financials
• Creador
• Growth capital
• Financial Services
• Southeast Asia
• India