International Finance Corporation (IFC) is proposing an equity investment of $15 million or 20% of the fund’s total committed capital in CapAleph Indian Millennium Fund (CapAleph), which targets to raise $150 million to finance small and medium-sized companies.
The fund will be a Mauritius registered and the Fund Manager – CapAleph Advisors India Private Limited -- will based in Bangalore.
CapAleph Indian Millennium Fund has a target fund size of $150 million and IFC is proposing an equity investment of $15 million or 20% of the Fund’s total committed capital.
The fund will support small and mid-sized companies in incipient to early stages of evolution and growth in emerging industry segments through a ‘buy and build’ strategy.
CapAleph will seek control or significant minority stakes and investments will consist primarily of equity and equity-linked instruments, according to the project document.
The five high potential segments, which the fund will focus, include technology based businesses, infrastructure support services, new healthcare services, education and skill development and emerging consumption trends.
“Target investee companies will be SMEs, which are capital constrained and have very limited access to bank debt or the public markets to finance their growth strategies,” said in the report.
This project involves IFC investment in a private equity fund and has been classified as Category FI. The indicative pipeline includes sectors like chemicals, manufacturing and engineering. These sectors are likely to have environmental and social concerns mainly around occupational health and safety (OHS), labour, air and water pollution, and waste management.