India's Nalanda raises additional $620m for evergreen fund

While Singapore-based Nalanda said in a US regulatory filing that the fundraising was ongoing, a source familiar with the GP said the tranche has now closed. The fund was launched in 2011 as a follow-up to Nalanda's first vehicle, which began in 2007 as a traditional PE fund and later converted to an evergreen structure. The GP is no longer investing out of the first fund.

Nalanda focuses on long-hold PIPE investments in Indian small and medium enterprises (SMEs), similar to fellow Indian GP WestBridge Capital. Investments include a INR420 million ($6.5 million) commitment to compressed-air equipment manufacturer Elgi Equipments, INR268 million for online classifieds company Info Edge India, and INR270 million for bearings manufacturer NRB Bearings.

Founded in 2007 by Pulak Prasad, formerly India managing director at Warburg Pincus, Nalanda draws mainly from LPs in the US, with its base dominated by endowments and foundations. LPs make a full commitment up front and have the option to exit every five years.

Nalanda is one of a handful of Asia-based GPs to manage evergreen funds; others include WestBridge, China's Chengwei Ventures and its spinout Yuantai Investment Partners, and Japan's Nippon Sangyo Suishin Kiko (NSSK). The structure is rare globally and even more so in Asia, appealing to a niche set of investors seeking the freedom to invest over a longer term without being required to exit.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• GPs
• Fundraising
• India
• Nalanda Capital
• PIPE