Paragon Partners reaches first close on debut fund

The India growth fund will invest about $10-20 million in mid-sized companies in the consumer, infrastructure, financial services, healthcare services and industrial sectors.

Mumbai-based Paragon Partners will be announcing a first close on INR 400 crores ($59 million; €54 million) for its debut private equity fund Paragon Partners Growth Fund in early February, Private Equity International has learned.

Paragon Partners Growth Fund began fundraising in 2015 with a target of $200 million, which it plans to achieve by December 2016.

The firm targets minority stakes in high-growth mid-sized businesses in the consumer, infrastructure, financial services, healthcare services and industrial sectors with a ticket size of $10-20 million.

Paragon has made its first investment in an engineering, procurement and construction service provider for about $10 million, a source with knowledge of the matter told PEI.

The fund has seen commitments from domestic institutions and high net worth individuals. It will start raising capital from foreign investors after its first close, the source said.

The source added that from a fundraising perspective there is a lot of optimism in India at the moment, with the sweet spot in the mid-market space, as there are currently close to 12,000 companies in this segment.

Paragon Partners was founded by investment professionals Siddharth Parekh and Sumeet Nindrajog in 2015.

Parekh, son of Deepak Parekh, the chairman of mortgage lender Housing Development Finance Corporation (HDFC), was an investment principal for over seven years at the Mumbai office of UK-based private equity firm Actis. Before that he worked as an analyst with the International Finance Corporation in Washington, D.C. and as a consultant at the Boston Consulting Group in New York.

Nindrajog worked at Ares Management in its private equity group in Los Angeles, and in UBS in its investment banking group. He is also the co-founder and executive director of Mumbai-based Hover Automotive India.

The firm’s advisory board includes HDFC chairman Deepak Parekh, Marico Innovation Chairman Harsh Mariwala, Capital Advisors chairman Sunil Mehta, and senior advisor at Corbel Structured Equity Partners Jeff Serota.