Kedaara raises over $500m for India buyouts

The Manish Kejriwal-led firm is already oversubscribed for its debut vehicle, which expects to make a final close in the next few months.

Kedaara Capital has passed the $500 million target for its first private equity fund focused on India, according to a source with direct knowledge of the matter. The firm expects to make a final close in the next few months and has a $600 million hard-cap. 

Kedaara declined to comment on fundraising.

Canadian LP Ontario Teachers’ Pension Plan anchored the vehicle, making up a “very significant part of the fund”, according to the source. The fund has since made two closings, both in 2013, with the most recent April closing reaching almost $500 million. 

Other heavyweight LPs have been linked with the fund, including Singaporean sovereign wealth fund Temasek and the Abu Dhabi Investment Authority. However, Private Equity International’s source said they are not involved with Kedaara. 

Manish Kejriwal
founder, Kedaara
Capital

The firm has attracted a wide range of global investors that include sovereign wealth funds, pension funds and family offices, the source said.

The firm was launched in 2011 by ex-Temasek executive Manish Kejriwal and will focus on buyouts in India – a market that typically offers minority stakes to private equity investors. A source close to the firm told PEI earlier that Kedaara already has a strong pipeline of control deals, although the firm is yet to close a deal in the country. 

Although LP sentiment toward India has waned over the past few years as many GPs have struggled to exit investments and return capital, a select group of firms have had successful fundraises.

In May, Tata Capital made a final close on its Tata Opportunities Fund at $600 million – the largest debut fund ever raised in India – having launched the vehicle in 2011, according to the firm. 

Tata joined ChrysCapital and Everstone Capital Partners as one of the few country GPs that raised a recent India fund.  ChrysCapital hit its $510 million hard cap for its sixth India-focused fund in May last year, while Everstone closed its second fund 50 percent oversubscribed on $580 million in March 2011, PEI reported earlier.

Only $1.5 billion was raised for India during 2012, a 60 percent drop from the previous year, according to PEI's Research & Analytics division.