Indian fund of funds Evolvence India Fund has invested $20 million (€14.8 million) in JM Financial’s $225 million India fund alongside lead investor Old Lane Partners.
The fund’s investments include Genesis Colour, a high-end retailer, Sona Group, an automotive components manufacturer and International Tractors a tractor manufacturer. JM Financial’s fund is focused on growth-oriented, largely unlisted, mid-sized companies.
Jay Jegannathan, managing director, Evolvence India, said: “India’s attractiveness is not merely its sizzling economy – Indian companies also have the highest return on equity in Asia.”
In 2006 private equity investment in India was $7 billion, according to research produced by Venture Intelligence, India. Buyout firms have been attempting to take advantage of the rapid growth of the Indian economy which grew by 9.2 percent in 2006-7 according to the Reserve Bank of India in April.
Promethean India completed a £50 million (€74 million, $99 million) listing of its first India fund on AIM at the beginning of the month, while last month it was revealed Oman’s largest bank was planning a $250 million Shariah compliant India fund and another $750 million fund. Evolvence India also listed on AIM at the beginning of the year raising around $100 million.
Evolvence India said in a statement it is the first independent private equity fund of funds set up for investments in India.
It has committed to seven funds including ones managed by Baring India Private Equity, IDFC Private Equity and Leverage India.