Exhilway Global (EG), one of the biggest emerging markets private equity (PE) funds in the world, will invest $1 billion in India. EG will launch its flagship Exhilway Global Opportunities Fund L.P (EGO) next month, the fund plans to raise over $2 billion from the accredited investors based in US, Canada and UK. The fund will operate under the newly introduced JOBS Act of US and plans to promote its EGO fund over the internet. EG will shell out $30 million on the digital marketing of the fund.
According to a statement of EG, EGO is among the world's first hybrid PE fund, which will give its investors a minimum debt return and an unlimited potential to make money over the equity pledged by the promoters of the investee companies. The tenure of the fund is kept at 5 years as compared to the industry average of 8-10 years. The fund will offer complete capital protection as compared to other risky PE investments. Even before the fund is announced, the management has confirmed commitments worth $70 million from several large investors.
EGO has finalised close to 50 companies and is performing due diligence. EGO is an opportunity focused fund rather than being sector specific. "India is an exciting investment destination; the PE market in India is still small but is booming. The middle class is aspirational and believes in spending. The rise in demand will give birth to many successful businesses," said Ajay Garg, CEO, India operations.
The fund will target an annual return of 20% p.a. followed by 8% p.a. on the investment.
"After rolling out EGO-I we plan to announce EGO-II which will invest in close to 100 companies, we plan to emerge as one of the largest private equity fund in India," said Rahul, President, India operations.
EG will also launch its alternative trading platform called Exhilway Link in December this year.
"EGO is the best investment opportunity; the world is recovering from recession and we will invest in the best opportunities on behalf of our investors," said Joy Ghosh, Director, EG India.