IABF to close $120-mn fund this year

India Agri Business Fund (IABF), a $120- million equity fund instituted in 2008 for which Rabo Equity Advisors is an investment advisor, is planning to close the fund by this calendar year.

“We have already deployed 65 per cent of the fund and invested in eight companies including LT Foods, Sri Biotech, Geepee, Global Green, Super Agri and Daawat. The remaining fund will be invested in the in two-three deals over a few months,” said Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors.

Srivastava said that the company was finalising deals with two companies in the food and agriculture space in two months. On Friday, Rabo Equity Advisors has signed an agreement with Hyderabad-based Super Agi Seeds for Rs 50-crore fund.

The $120-million IABF is sponsored by the Netherlands-based Rabobank and was formed for promotion of food and agribusiness companies in the Indian market.

Replying to a query on its exit plans in the invested companies, he said, "Currently, the agri and seeds market is growing. We do not see any plans to exit in the near future. It may happen after three-four years.”

Rabo Equity is also planning its second fund, valued at $250 million, later this year. “For the first fund, the deal size is smaller with an average of $ 6 million, whereas the average ticket size for the second fund will be 15-16 million,” he said.