Faering Capital raises Rs 830 cr via PE fund

Faering Capital, the Aditya Parekh-promoted private equity (PE) firm, today said it has raised Rs 830 crore from from its first fund.

"Faering Capital is pleased to announce the first closing of its maiden private equity fund - Faering Capital India Evolving Fund in December, 2010 with a corpus of Rs 830 crore," the company said in a statement.

Named after a boat used by the Vikings as they roamed the seas more than 1,000 years ago, Faering is promoted by HDFC Chairman Deepak Parekh's son and his friend and co-founder Sameer Shroff.

The fund will focus on consumption-related investment opportunities and will expect investment in mid-cap firms, with an average deal size of Rs 30-80 crore in each transaction.

Faering believes "there are significant structural positives in the Indian economy today -- largely driven by favorable demographics, increasing urbanisation, a growing middle class and a young professional workforce."

"These factors will result in sustained broad-based consumption growth in India, which will boost a number of industries such as financial services, consumer and retail, telecommunications, technology and internet, media and entertainment, education, healthcare and business services," it added.

The company's advisory board comprises of Deepak Parekh and Adi Godrej. The board members will interact with companies; give advice and help them implement their business plans.

However, according to global consultancy E&Y, PE players faced a challenge situation in raising funds. Funds raised for India is estimated at $2.5 billion during 2010, which is much less than $3.8 billion mopped up in 2009.