Impact investor Lok Capital
has received $90 million in commitment from investors
for its $100-million third fund, which is likely to make a final close in November, said a partner at the firm.
Lok has already deployed nearly a third of this capital ($25 million to $26 million) since May last year after receiving $60.5 million from investors, said Vishal Mehta, co-founder and partner at the firm.
It has earmarked another $5 million for follow-on funding in existing investments. Lok Capital
had announced the first close for its third fund at $40.5 million in June 2016 but began investing earlier.
In May, it led a $3.5 million funding in affordable housing finance
firm Ummeed Housing Finance
Ltd; in April, it invested in $10.23 million in Chennai-based Dr Mohan Diabetes Specialities Care.
For the first time, Lok Capital
is raising money from local investors, who are likely to contribute a quarter of this fund. In the past, 95 per cent of investments came from development financial institutions.
raised $22 million in its first fund (2006) and $64 million in its second fund (2012). The first fund gave a return of 10 per cent in dollar terms and 15 per cent in rupee terms and was liquidated.
"We have returned the entire principal of $65 million of the second fund and maybe a little more, to investors.
We are clocking about 25 per cent returns in dollars terms,’’ says Mehta. He claims this makes Lok Capital
amongst the most successful impact investors
Aavishkar, a pioneer in this field, has raised five funds and deployed more capital ($250 million-$300 million) in India than Lok Capital.
Backed by IDFC MD & VC Rajiv Lall (Lok was born before IDFC when Lall was leaving PE firm Warburg Pincus), the impact investor has had several exits, which has helped it post good returns.
Fund I of $22 mn has been fully returned to investors
at an IRR of 15% and is liquidated
Fund II of $65 million is tracking gross returns of 25%. The principal amount has been returned to the investors
FUND III targeted corpus is $100million expected to have final close by November 2017