Private equity (PE) firm Kedaara Capital Advisors Ltd which is co-founded by veteran fund manager Manish Kejriwal, has hit the road to raise its second fund and has received a commitment from International Finance Corporation (IFC), the private-sector lending arm of the World Bank. IFC is planning to invest up to $40 million in the new fund of Kedaara Capital.
Kedaara was founded in 2011 by former Temasek Holdings Pte India head Manish Kejriwal, along with Sunish Sharma and Nishant Sharma, who were managing director and principal respectively of global PE firm General Atlantic in India. Its target sectors include logistics, packaging, specialty chemicals and ingredients, pharmaceuticals, and potentially finance companies.
IFC has both a direct investment practice and indirect exposure to Indian firms as a Limited Partner (LP) to local private equity and VC funds. This year it has proposed to invest in three VC funds. Earlier in May, IFC said it proposed to invest $10 million in the first fund of Stellaris Venture Partners, an early-stage venture capital firm founded by former top executives at Helion Venture Partners.
On the investment, IFC said:
The fund is an LLP based in India and will pool funds from domestic and offshore investors through Kedaara Capital II Limited (a Mauritius limited liability company with limited life) and Kedaara Capital Alternative Investment Fund II (a trust settled under the Indian Trusts Act, 1882).
Further adding to that, they said:
The fund will focus on investments in Indian portfolio companies in equity, quasi-equity and equity-linked investments in businesses organized or with significant operations in India
The firm raised its debut fund with a corpus of $540 million in 2013, in what was then one of the largest fund-raises by an independent, home-grown PE fund. Canadian pension fund Ontario Teachers Pension Plan anchored the vehicle and was joined by other sovereign wealth funds, pension funds, family offices, fund of funds and endowments.
The firm’s first investment was Rs200 crore in Mahindra Logistics Ltd in April 2014. In its latest investment, the PE firm led the investment of $100 million by a consortium of investors in Hyderabad-based micro finance institution (MFI) Spandana Sphoorty Financial Ltd in a $270 million round.
IFC in March proposed an investment of $3 million in Bengaluru-based early-stage venture fund Pi Ventures and another $20 million in IDG Ventures India’s third India-focused fund in January.