SBI-backed Oman India fund raises $220m

The Mumbai-based firm’s capital raising target for its second India-focused vehicle is reportedly three times the size of its maiden 2010-vintage fund.

The Oman-India Joint Investment Fund (OIJIF), a Mumbai-based growth capital private equity fund focused on India’s mid-market companies, has held a first close on $220 million for its latest vehicle, according to media reports.

Anchor investors in the Oman India joint Investment Fund II include Oman’s sovereign wealth fund the State General Reserve Fund of Oman (SGRF) and the State Bank of India (SBI), which previously also backed OIJIF’s first fund. The SGRF reportedly has committed $150 million to the fund, while the SBI and new investors committed the remaining amount.

OIJIF does not focus on specific sectors but typically invests between $5 million to $15 million per transaction. However, for its second vehicle, the firm intends to make larger investments of around $20 million to $25 million, according to an SBI executive cited by The Oman Tribune.

OIJIF II is targeting $300 million by the end of 2017 for the vehicle. If the firm is able to meet this target, OIJIF II will be three times the size of its predecessor fund, the 2010-vintage $100 million OIJIF I.

The firm’s first vehicle is already fully deployed across seven investments including Bangalore-based ING Vysya Bank, Gujarat-based agri firm GSP Crop Science and electronic boards manufacturer Indus Teqsite. OIJIF I has already made two exits, returning approximately 47 percent of the total drawdown capital, the firm said on its website.