Eastgate Capital Group, the private equity subsidiary Saudi Arabia’s NCB Capital, has invested 1 billion Indian rupees ($23.3 million; €14.7 million) in Avendus Capital, an Indian investment bank, for a 15 percent stake.
Established in 1999, Avendus Capital provides its clients with M&A services, private equity and structured finance advisory, institutional broking, strategic advisory and equity capital markets services. It has offices in Mumbai, Bangalore and New York.
Nasr-Eddine Benaissa, co-managing partner at Eastgate Capital, said in a statement: “We believe India is one of the most attractive markets in the world and is well positioned to be a driving force in the global economy. Indian financial services, and in particular investment banking and capital markets related businesses, will naturally benefit from this momentum.”
The investment will be used to strengthen Avendus’ institutional broking franchise and to fund the growth of its operations in international markets. Ranu Vohra, managing director and chief executive officer of Avendus Capital, said Eastgate’s investment will “help us in building our global network of relationships particularly in the Middle East, which is increasingly becoming the source of capital for fast growing Indian corporates”.
Rajiv Nakani, a director of Eastgate Capital, is joining the board of Avendus.
Eastgate made the investment from the Eastgate Global Emerging Markets Fund, which invests in Asia, Eastern Europe and Latin America, with a focus on China, India, Russia and other Asian countries. The fund is targeting a gross IRR of 30 percent.
A source close to the firm told PEO that this is the firm's first investment in India.
The firm manages two other funds, one of which is a MENA-focussed private equity fund, and the other, a GCC-focussed real estate fund. In all, it manages $800 million across the three funds. Fundraising is on for the three funds, and the firm is targeting between $400 million and $500 million for the final close of each, the source said.
NCB Capital is the investment banking subsidiary of Saudi Arabia’s National Commercial Bank. It manages assets of approximately $11 billion.