Everstone closes second India fund on $550m

The firm attracted capital exclusively from investors outside of India for its second fund that will continue targeting opportunities in ‘consumer-driven’ sectors.

Everstone Capital has closed its second India-focused fund on its hard cap of $550 million, attracting capital exclusively from limited partners outside of India.

“Investors are attracted to India for its growth but widely regard it as a highly competitive market for private equity,” Richard Allsopp, partner with placement agent Campbell Lutyens, said in a statement about the fund close.

The firm’s LPs include endowments and foundations, sovereign wealth funds, pensions, family offices, insurance companies and funds of funds. About 41 percent of the investors are located in North America, 40 percent in Europe and 19 percent in Asia.

Fund II launched at the beginning of 2010. Everstone’s first fund, Indivision I, raised $425 million in 2006.

Fund II will focus on deals in India’s consumer-driven sectors like retail, and also into so-called “infrastructure-enabling” companies.

Everstone manages assets of more than $1 billion across Indivision India Partners and private equity real estate funds, namely Horizon Realty and Indospace Logistics, an industrial warehousing fund being raised in partnership with US industrial real estate investment firm Realterm Global.

The firm is led by co-founders Atul Kapur and Sameer Sain, former executives at Goldman Sachs.

India, one of the most active emerging markets, experienced a record 121 companies exited during the 12 months ending December 2010, up from 66 exits in the previous year, according to Venture Intelligence, a research service focused on private equity and M&A activities in India.

Also, private equity firms invested about $8 billion across 325 deals in India in 2010, up from $4 billion over 290 transactions in 2009.