Gaja Advisors Ltd, Mauritius, is planning to launch its second fund of $250 million in India.
The International Finance Corporation (IFC) is planning to invest $25 million in the new fund, which will focus on providing growth capital to mostly unlisted mid-market companies and SMEs in India.
The first close of no less than $75 million is expected to take place by the end of 2013 or early 2014. The proposed IFC investment would be in the form of equity, not to exceed 20 per cent of the total capital commitments, according to IFC.
IFC's commitment at the time of first closing would act as a stamp of approval and help mobilise additional capital from international investors. This will help the fund achieve its first closing and reach its target size. IFC's support will further catalyse interest in equity funding for capital-constrained SMEs, said IFC.The fund seeks to put $15-30 million per investment in 6-10 fast growing Indian companies as equity and equity-linked securities.
The adviser to the fund is Gaja Advisors Ltd, Mauritius. Gaja Advisors Private Limited (Gaja) would act as a sub-adviser to them. Gaja was founded in 2004 by Indian professionals and has been making private equity investments since 2005. Gopal Jain and Ranjit Shah are its co-founders.
