Creador has bought a 9.9 percent stake in Chennai-based Repco Home Finance in a deal worth $13.7 million, according to a company statement.
RHFL was founded in 2000 and provides home loans across southern India. The business has now started expanding to adjacent states and has 74 branches across 8 states in the country. Creador believes that the housing finance industry in India will continue to see strong growth given the favorable demographics, low penetration and housing as a stable asset class in the country.
“Creador has been impressed with the company’s unique proposition in providing mortgages to an underserved market as well as the quality and track record of the management team,” Anand Narayan, senior managing director of Creador Advisors India, which acts an advisor to Creador, said in the statement.
RHFL is the fifth investment from the firm’s maiden fund and its second investment in India, according to the firm. Its first investment was in Cholamandalam Investment and Finance Company Ltd, a non-finance banking company headquartered in Chennai.
In December, Creador closed its maiden fund on $140 million, Private Equity International reported earlier. The firm expects to have invested 75 percent of the fund by March 2013, less than 18 months after its launch, and is expected to deploy 50 percent of its capital in Indonesia, and 25 percent in both Malaysia and India.