Faering raises Rs 830 cr for first PE fund

Faering Capital, promoted by former Morgan Stanley executive Sameer Shroff and HDFC honcho Deepak Parekh’s son Aditya Parekh, has raised Rs 830 crore as the first closure of its fund — Faering Capital India Evolving Fund. It is aiming to raise Rs 1,000 crore.

“We raised the fund completely from the domestic market and have no immediate plan for any off-shore fund. We are looking at about 10-12 deals through this fund and acquiring a significant minority stake,” Aditya Parekh told Business Standard. Faering plans to add eight people by the end of 2011 and three-fourth of them will join as associates and at the VP level.

The possible investment areas include financial services, consumer and retail, telecommunication, technology and internet, media and entertainment, education, healthcare and business services. The fund would assign significant consideration to the investee company’s corporate governance record and the quality of its management team, said a company statement. Faering expects to commit Rs 35-80 crore equity per transaction.

“Today, there are significant structural positives in the Indian economy — largely driven by favourable demographics, increasing urbanisation, a growing middle class and a young professional workforce,” it said.

The company’s advisory board comprises Deepak Parekh and Adi Godrej. The members will interact with companies, advise and help them implement business plans.

The fund is named after a boat used by the Vikings to roam the seas around 1,000 years ago.