Pune-based IndiaCo Ventures is targeting $500 million for its first traditional private equity fund.
The Bombay-listed firm previously made investments of between $2 million and $2.5 million from its balance sheet.
The India Growth Opportunity Fund is aiming for a $150 million first close by the end of December, and hopes to hold its final close by the end of 2010.
“For the first fundraising phase, the firm is looking at investors in the US, the UK and the Middle East. Indian investors may be targeted later,” Satna Shah, an investment associate, said in an interview.
The fund will invest between $10 million and $50 million in small and medium enterprises. Although it is sector agnostic, the firm is interested in sectors such as manufacturing, clean and renewable energy and healthcare, Shah said.
IndiaCo Ventures appointed Mohit Burman and Brian Brown as non-executive independent directors in August. Burman, a member of India’s prominent Burman family, is a director at healthcare and food conglomerate Dabur India. Brown was previously a managing director with Citigroup Global Markets. Burman will help with fundraising while Brown will help with deal-sourcing, according to Shah.
The firm's portfolio companies include online payment business Verity Technologies, telecom network service provider Info Dynamic Telesystems and Laser Cosmetics, a network of laser surgery clinics.
IndiaCo Ventures is led by vice chairman and managing director Rahul Patwardhan. It currently has four fund partners and a 10-strong investment team.