The new fund, India Business Excellence Fund IV (or IBEF IV), will invest in mid-market Indian companies founded by first-generation entrepreneurs with significant product and geographic leadership, said a company statement.
The home grown private equity firm which has been investing in the Indian private markets since 2007, will make 10 – 12 investments from the new fund across sectors of consumer, financial services, life sciences and niche manufacturing.
The fund may also evaluate & selectively invest in emerging new age business models with digital / online distribution channels, within its preferred sectors, company said.
The fund is expected to achieve first close before December 2021 and conclude fundraising within 9-12 months.
“The PE/VC ecosystem in India has really come of age over the last decade and growth equity capital will continue to play a pivotal role as India moves from a $ 3 trillion economy to over $10 trillion in the next decade,” said Vishal Tulsyan, Managing Director and CEO of MOPE.
MOPE’s first fund, a 2007 vintage, Rs550 crore ($ 115 million) fund made 13 investments and recently fully exited the fund with an IPO of GR Infraprojects. Other exits from Fund 1 include AU Financiers and Dixon Technologies. Overall, Fund 1 made 6x returns and clocked an IRR of 27% at the gross level in INR terms, according to the statement.
The PE firm’s second fund, raised in 2013, was an Rs 1,000 crore ($155 million) fund and made 11 investments, while its third & latest Rs 2,300 crore ($320 million) fund was launched in 2018.
Overall since inception in 2006, the private equity firm has made 33 investments and have generated 6x returns on its 14 exits till date, added the statement.