India-focused Everstone Capital Partners is poised to close its second fund at $550 million on March 7, a source close to the development confirmed.
Due to the fund being oversubscribed, the firm is currently working to accommodate investors by reducing prior commitments.
Fund II will follow the strategy implemented by the firm’s first fund, Indivision I, in focusing on deals in India’s consumption-driven sectors, such as retail, and also into so-called 'infrastructure-enabling' companies, the source said.
Commenting on the fund’s pipeline, he noted that the firm would continue to speak to companies based on its ability to “add value” and said there were several “conversations underway”.
Fundraising for Everstone Capital Partners II started at the beginning of 2010. A source told PE Asia then that the fund would raise capital entirely from overseas investors, in contrast to a few other Indian private equity firms, such as ICICI Venture, Aditya Birla Private Equity and Reliance Equity Advisors, which have raised significant sums of money from domestic institutional and retail investors.
Its predecessor, Indivision I, was a $425 million vehicle raised in 2006 and counts businesses like construction and engineering company BE Billimoira &Co. and cosmetics company Daces as part of its portfolio.
According to its website, 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.