Fund focus: SeaLink's patience pays off

For anyone attempting to launch a new GP in India, time is often the biggest investment of all. SeaLink Capital Partners was no different: when Heramb Hajarnavis and Karthik Narayanaswamy left KKR in 2014, they knew that despite their impressive CVs they would be starting over in gaining the confidence of LPs.

"There is a growing interest in understanding and investing in India," says Hajarnavis. "But the notebook to checkbook conversion is still a long process as investors are rightly focusing on manager selection and judgment around those managers who can create institutions."

More than three years after SeaLink's launch, its first fund has closed at $315 million, significantly beating its $250 million target. Investors include entrepreneurs and family offices in India, Southeast Asia, North America, Europe, and the Middle East. 

SeaLink now plans to put its capital to work in India's underserved middle market. The founders see considerable opportunity in this segment, particularly among family-owned companies with annual revenue of $25-120 million. 

The role these companies play in the economy is especially important considering the country's geographically fragmented markets, where local ties translate into considerable brand loyalty. However, they often have trouble accessing financial support. The firm believes it can fill this financial gap and provide crucial advice to investee companies to help them tackle new opportunities.

"SeaLink has a very clear strategy of working closely with investee companies to enhance value through operational efficiencies and improved corporate governance," says Hajarnavis. "In order for that approach to be successful, the partner and management company must have a high level of integrity, transparent communication and openness towards a collaborative approach."

The six sectors of focus for SeaLink's debut fund are healthcare, information technology, business services, financial services, and consumer products, in addition to niche manufacturing. It has already made one investment – a INR1 billion ($14.9 million) Series C round for dialysis clinic chain NephroPlus alongside the International Finance Corporation.

Hajarnavis sees the NephroPlus deal as a significant turning point: it showed that the founders could execute a disciplined investment approach independently of KKR and convinced several LPs to commit to the fund. The firm is evaluating a pipeline of investments, and expects further opportunities to emerge as its reputation is established.

"The team has several years of investment and operational value-add experience, which we believe will make the firm a preferred partner for entrepreneurs," Hajarnavis says. "We will work closely with them to accelerate growth, enhance performance and achieve their long-term objectives while maximizing value creation for our investors."   

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• Topics
• South Asia
• Fundraising
• Growth
• GPs
• India
• SeaLink Capital Partners
• KKR