UC Capital launches Euro-India fund
UC Capital, a joint venture between Urdaneta Capital and Capvent, has launched a fund that will invest in European companies and help them open up new growth channels through exposure to India.
The Lions Growth Fund has a corpus of EUR150 million ($170.7 million) and will back 10-12 companies from the industrial regions of northern Italy, Spain, southern Germany and France over the next four years. Equity check sizes will be in the EUR4-20 million range.
"We acquire controlling stakes in businesses that are facing slowing domestic markets in Europe where we see exceptional growth and manufacturing opportunities in India and beyond. These companies may face 'special situations'; either underperformance, stress, distress or outright insolvency. We also co-invest in minority positions in attractive European companies focused on growth," UC Capital said in a statement.
The firm has a team in the EU with restructuring and turnaround experience, as well as personnel in India that can contribute industrial and investment expertise. Business transformation is likely to involve leveraging lower cost manufacturing in India as well as targeting new customers across Asia.
Sectors of interest include infrastructure solutions such as solar, construction, utilities and energy; manufacturing and engineered products; advanced materials; healthcare; and automotive.
Urdaneta was established in 2014 by Mark Marti and Jozef Jansen to focus on restructuring Europe-based small and medium-sized enterprises (SMEs) in the industrial and automotive sectors. Last year the firm completed two turnaround deals that involved growing manufacturing capabilities and markets in India.
Co-founded by Varun Sood - who is now a managing partner at UC Capital - Capvent spent four years as a fund-of-funds before switching to an Asia-focused direct investment model in 2003. It has committed EUR1.2 billion across various private equity strategies and manages the Capvent Asia Consumer Fund and Capvent India Private Equity. A total of EUR400 million has been invested in India and China.
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