CX Partners targets May first close for India mezz fund

According to The Economic Times, the $250 million Intermediate Capital Fund, headed by former J.P. Morgan principal Shishir Jain, will reach a first close of $100-150 million. It will have a strong focus on India's manufacturing sector.

"We have a substantial commitment from one anchor investor and are looking to get one more anchor investors on board," said Ajay Relan, co- founder and managing partner of CX Partners. "We see this fund as being complementary to our efforts. It will expand our franchise."

Set up in 2008, CX closed its debut private equity fund at $515 million two years later. It typically provides growth equity to mid-market companies in India in sectors ranging from power, electronics, hotels, telecommunications and financial services.

A number of mezzanine and special situation funds have been set up in India in recent years as lending by banks slows down and promoters are less willing to dilute their holdings in a depressed market. In January, ICICI Ventures and Apollo Global Management raised a $325 million joint special situations fund, AION, to invest in distressed Indian companies.

Non-banking financial companies (NBFCs) have also been another source of alternative financing for private equity firms investing in the country. KKR set up its own NBFC in 2009, while Goldman Sachs Private Equity, Ashmore Group and Everstone Capital teamed up to create Indostar Capital Finance.

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• Topics
• South Asia
• Mezzanine
• Industrials
• Fundraising
• India
• CX Partners
• Mezzanine