India’s Multiples targets $500m for Fund II
Multiples Alternate Asset Management, the private equity firm set up by Renuka Ramnath after departing ICICI Venture, is said to be targeting around $500 million for its second India-focused fund.
Prakash Nene, Multiples' managing director and CFO, told Live Mint that approximately 71% of the $405 million raised for Fund I in 2010 has now been invested. The new vehicle has been soft-launched and discussions have been held with the 15 existing LPs.
International investors in Fund I include UK development finance institution CDC Group, Canada Pension Plan Investment Board (CPPIB), Kuwait's Public Institution for Social Security and Dutch pension fund PGGM. Commitments also came from domestic groups such as Life Insurance Corporation of India, Andhra Bank and Punjab National Bank.
Nene added that Multiples expects to attract more domestic LPs into Fund II.
The fund will follow a similar sector-agnostic remit to its predecessor, with opportunities in IT and the restaurant space currently being explored. The Fund I portfolio includes Vikram Hospital, denim manufacturer Arvind, South Indian Bank, rice milling equipment provider Milltec Machinery, cinema chain PVR, Indian Energy Exchange and Cholamandalam Investment and Finance.
Multiples primarily makes mid- to late-stage equity investments in mid-size public and private companies, committing $15-50 million per transaction. Minority growth investments account for the bulk of the portfolio, although the team has experience of control transactions. During Ramnath's eight-year tenure as head of ICICI Venture, which ended in 2009, the firm was among the first in India to branch out into buyouts and corporate carve-outs.
Private equity fundraising in India has slowed substantially since the boom period of 2006-2008 when more than $23 billion poured into the asset class over a three-year period. Commitments to Indian GPs over the next five years totaled about $15 billion.
Nene noted that Multiples is not under the same pressure to deliver exits as private equity firms that are now reaching the end of their fund cycles.
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