GIC invests in Warburg-backed Indian NBFC

The $100bn Singaporean state fund will provide growth capital to Capital First via its affiliate Caladium Investments.

Singapore sovereign wealth fund GIC Private Limited has invested INR 340 crores ($51 million; €48 million) in the Mumbai-based non-banking financial company Capital First through its affiliate Caladium Investments.

In a statement Caladium said it picked up 4.78 million shares at INR 712.7 per share, representing a 4.8 percent stake in the company.

GIC is an active investor in India’s financial services sector. Last year the fund invested $165 million in Kolkata-headquartered Bandhan Financial Services and is said to have participated in a funding round for the Indian microlender Janalakshmi Financial Services alongside TPG Capital and a consortium of investors. GIC also reportedly owns separate stakes in the Housing Development Finance Corporation Bank and Kotak Mahindra Bank

Capital First provides loans to retail customers including secured loans to small and medium enterprises, consumer durables loans and gold loans to over 3 million customers.

Warburg Pincus acquired a 65 percent stake in Capital First nearly four years ago through its 2007-vintage $15 billion Warburg Pincus Private Equity X. Overall, the New York-headquartered private equity firm has invested over $3 billion in Indian companies including Ambuja Cements, Au Financiers and Bharti Airtel.

GIC, with over $100 billion of assets under management, allocates about 9 percent of its portfolio to global private equity, it said in its latest annual report.