LotusPool targets $125m India fund, IFC to invest
LotusPool Capital, a private equity firm set up by executives from Actis and ePlanet Capital, has received a $15 million commitment from International Finance Corporation (IFC) for its debut fund. The vehicle, which has a target of $125 million, will invest in small and medium-sized enterprises (SMEs) in South India and emerging states with low PE penetration.
According to an IFC filing, LotusPool Fund I will focus on taking controlling stakes in scalable SMEs that are at early expansion phase of their growth cycle. The development finance institution's presence as an LP is expected to help attract commercial investors into the fund and contribute to strong environment, social and corporate governance at portfolio company level.
The private equity firm's co-founders and managing partners are Subbaro Telidevara, previously a partner at Actis and before that a director at CDC Group, and Chandrasekar Kandasamy, formerly managing partner at ePlanet Capital and a director at The Carlyle Group.
LotusPool claims to be looking for "small giants" that have the potential to dominate a sub-category or sub-segment of a large, growing market, the ability to leverage innovation and market leadership to drive commercial performance, and the skills to create value through differentiation.
Value drivers are expected to include disruptive technology or the new application of existing technology or business model, effective use of human capital and proprietary branding and distribution.
Target companies will have $3-30 million in revenue and EBITDA of less than $10 million. LotusPool expects to commit $2-15 million per company with a typical holding period of 2-7 years. It has the capacity to execute larger deals through co-investment with LPs.
According to AVCJ Research, India-focused funds have received commitments of $1.9 billion for the year to October. This compares to $2.4 billion for 2012 as a whole, the lowest annual total since 2004.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.