PE firm Creador plans fresh funds worth up to $600 mn for India, SE Asia

This would be Creador's tenth investment in India

With several blockbuster exits, private equity (PE) entity Creador is planning to launch a new $500-600 million fund by next year, its fourth.

Sources say the new fund, expected to be launched by next year, will focus on South and Southeast Asia primarily India, Indonesia, Malaysia, Philippines, Singapore and Sri Lanka.

Anand Narayan, managing partner at Creador Advisors India, refused to comment on the issue.

In recent months, Creador made several big-size investments in the healthcare sector. Recently, it invested Rs 215 crore ($33 million) in the publicly listed Ujjivan Financial Services. Ardisia, an affiliate of Creador III LP, invested the money for a five per cent stake.

The firm says it aims at long-term investment in growth-oriented businesses in Southeast Asia and India. Its current investments are in India, Indonesia and Malaysia, about a third in each.

Narayan said Ujjivan had demonstrated a strong financial record, with assets under management (AUM) growing ninefold to Rs 6,400 crore between 2012 and 2017. 

Creador has been operating for around seven years now. In India, Creador has made around ten investments, out of a total of 28 investments. The AUM across its three funds is $875 million. Narayan said the fund is generally sector-agnostic but less inclined towards high capex or high gestation period businesses.

India investments have been in financials, healthcare, pharmaceuticals, building material, retailing and housing. The typical investment band is $20-70 mn (Rs 130-460 crore).

All India-based assets are all performing well, said Narayan. India's performance is among the top decile of peer fund returns. Creador has had four full and one partial exit in India, of its 10 investments. None of the investments have been written off from its portfolio in India.

In 2017, it exited from Somany Ceramics with a nearly five-time return in dollar terms and a 74 per cent internal rate of return (IRR).

Recently, it also exited from City Union Bank, with am almost two-time dollar return and 62 per cent IRR.