India-focused private equity firm Nalanda Capital will be raising over $600 million for its new fund, Nalanda India Equity Fund, according to a filing with the Securities and Exchange Commission.
It had raised $475 million for its second fund in 2011 and $400 million for its first fund in 2005.
Nalanda firm declined to comment on the fundraising.
The firm takes significant stakes in small to mid-cap publicly listed companies in India, where it can be an active partner with established management teams and hold its investment over the long term.
It has invested in air compressor manufacturer ELGI Equipments, IT solutions company Mindtree, e-commerce firm Info Edge, business process outsourcing company GenPact and lingerie company Lovable. In January this year, it invested around $18 million in Mumbai-based local search service JustDial.
Limited partners in Nalanda’s funds include US endowments and foundations, US and European family offices, it said on its website.
The firm’s founder and ex-Warburg Pincus managing director Prasad Pulak had led Warburg Pincus’ early investment and exit from telecom company Bharti Airtel, which is said to have generated a 6x return for the firm.
According to Bain & Company’s India Private Equity Report 2016, India-focused private equity firms are carrying approximately $11 billion in dry powder, up from last year’s $8 billion. Fundraising in India, as in the rest of Asia, has however declined last year, dropping by 12 percent in aggregate.