CDC Group PLC has committed $30 million to the debut fund from Multiples Private Equity, an Indian private equity investor. The fund target is $450 million.
On the day that the UK Prime Minister begins a three day visit to India, CDC Group plc (“CDC”), the UK’s development finance institution, announces a commitment of US$30m for investment in Indian businesses in order to support economic development across the country.
CDC is backing Multiples Private Equity Fund I Limited (“Multiples”) which will focus on investing in businesses across a range of sectors, including financial services, healthcare, infrastructure, shipping and retail.
The fund aims to raise the Rupee equivalent of US$450 million from both international and Indian investors. Its investments will average US$20-30 million with the aim of building a portfolio of domestic companies which will benefit from strengthening economic growth and consumer demand.
Anubha Shrivastava, CDC’s Managing Director for Asia said:
“Despite improving economic conditions in India there is still a shortage of investment for promising businesses in many sectors of the economy. At CDC we strongly believe in the power of entrepreneurship as the key to economic development and our US$30 million commitment to the Multiples fund is a testament to this.
“The Multiples team has shown strengths as an investor and fund manager, as well as being a market leader, responsible for the first buy out of a company in India. Economic and political conditions continue to look good for private equity in India and the team’s experience and track record of adding value to portfolio companies should put it in a good position to strengthen India’s growing private sector.”
CDC’s first investment in India was in 1987 and it is now the largest international private equity fund investor in the country having committed over US$1.1bn to funds investing in Indian companies since 2004.
CDC will continue to support the Multiples fund by provide important guidance relating to the team’s structure and will ensure the fund’s procedures are in line with best international practice. CDC will advise the fund on setting environmental, social and governance policies, which over time will help ensure commercially, environmentally and socially sustainable development. This is the first fund to be raised by Multiples Alternate Asset Management Private Limited and is led by Renuka Ramnath, who led ICICI Ventures, in which CDC has previously invested.