India's True North closes sixth fund below target
Indian private equity firm True North closed its sixth fund last year at about $600 million, falling short of a revised target.
True North launched Fund VI in late 2017 with a hard cap of $1.1 billion, which had been subsequently revised down to $800 million, according to a person at the firm. Indian media outlet VCCircle reported that the fund closed last year achieving a final close around $600 million.
The source confirmed that some LPs that had committed to prior funds did not return for Fund VI. In 2018, the firm also underwent a leadership transition as co-founder Vikram Narula left the GP to join The Carlyle Group as co-managing director.
True North still counts Vishal Nevatia from the original team as a managing partner and is also led by three partners who have been at the firm for more than a decade.
Fund VI is True North's first vehicle since rebranding from India Value Fund Advisors in 2017. Known LPs include the Asian Development Bank, Canada Pension Plan Investment Board, and the Illinois Municipal Retirement Fund.
Previously sector-agnostic, True North now has dedicated teams looking at financial services, healthcare, consumer, agriculture, and agriculture investment opportunities. It seeks controlling stakes or significant minority stakes in Indian mid-market companies in order to help build them into market leaders.
Fund VI has made seven investments so far with majority stakes acquired in four companies – health insurance provider Max Bupa, hair and beauty care product manufacturer Sesa Oil, Digvijay Cements and Integrace, a carve-out from pharmaceutical giant Glenmark.
True North has also acquired significant minority stakes in health products manufacturer Zydus Wellness, non-banking financial company Fedfina and online insurance aggregator Policybazaar. The fund plans to make re-investments and find new targets but deal-making is on hold due to local impacts of the COVID-19 pandemic.
The GP continues to have a significant presence in India's healthcare sector with stakes in hospital chains Manipal Hospitals, Cloudnine Hospitals, and Aster DM Healthcare, along with medical technology manufacturer Trivitron Healthcare.
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