Creador sets $250m target for Fund II

The fund has $100 million in commitments from existing investors and soft circle interest for another $50-75 million, said Brahmal Vasudevan, Creador's founder and CEO.

Creador's first fund closed at $132 million at the end of January. Investment started almost immediately after the first close of $80 million in December 2011 and the vehicle is now around two thirds deployed.

The firm had its first partial exit last week when it divested nearly half of it 10% stake in Malaysian restaurant chain and instant coffee brand OldTown White Coffee for around $15 million, generating a 2x money multiple.

The company currently has five companies in its portfolio, including OldTown. Its most recent investment was in Indian home loans provider, Repco Home Finance, taking a 9.9% stake for INR724 million ($13.7 million).

Part of the reason for Creador's compressed time frame is that the difficult fundraising environment meant the GP was unable to meet its original target for Fund I of $300-350 million. Creador feels it is able to invest $80 million per year, but working with a smaller-than-expected pool of capital, it has been burning through the dry powder reasonably quickly.

"Within a few months of launching Fund I we realized the environment was very difficult," Vasudevan told AVCJ in January. "We met 300 people in the process and closed about 30 of them. Despite our experience a lot of people thought of us as a first-time fund. Even though they liked the team and liked the fact we were putting in 25% ourselves, they said they would be more comfortable as Fund II investors."

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• Topics
• South Asia
• Southeast Asia
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• India
• Creador
• Fundraising
• Southeast Asia