Investcorp, the Bahrain-based global alternative investment fund, is looking to target smaller investments in India in the $15-$40 million range rather than big ticket deals as it looks to grow its assets in the country.
Harsh Sethia, head of Investcorp India, told Arabian Business that the fund is also be keen to step up its investments in Asia – mainly in India and China – as part of its strategy to diversify its global investment base.
“We are actively targeting investment tickets in the $15-40 million range (in India). We would rather build a diversified portfolio of assets than have an outsized investment in a single investment,” Sethia said.
However, he also said the fund would be open to an opportunistic, venture style of investing, if the risk-return balance is compelling, when asked about whether it has any plans for big ticket investments similar to the ones made by other Gulf-based investment funds in India recently.
Abu Dhabi-based sovereign investment funds Mubadala and Abu Dhabi Investment Authority (ADIA), as well as the Public Investment Fund (PIF) of Saudi Arabia recently ploughed in billions of dollars in two ventures of India’s Reliance Group – Jio Platforms and Reliance Retail Ventures.
Investcorp has so far made investments in nine Indian start-ups – InCred, ASG, Zolo, Citykart, Intergrow Brands, Bewakoof.com, NephroPlus, FreshToHome and XpressBees.
The fund is understood to be currently in the process of finalising a significant minority investment deal in yet another Indian start-up.
Harsh Sethia, head of Investcorp India
On Investcorp’s growing interests in the Indian and Chinese markets, Shethia said: “We have been actively investing in both North America and Europe for four decades. Add both China and India to this geographic mix, and what you have is an ability to source, add-value and exit investments on a global platform, which we believe is unparalleled in the mid-market segment.
“The germ of venturing into Asia resulted from Investcorp’s objective of diversifying its base.”
Gaurav Sharma, head of private equity India at Investcorp, said the fund will also be keen to invest in Indian firms which are looking to expand into the Middle East region.
“The Middle East-India connection is one that Investcorp is uniquely positioned to address. We have a deep understanding, extensive network and sizeable presence in each of these markets, resulting in a value creation potential that we believe no other alternative asset manager can match,” Sharma said.
Sharma added that India currently has a very vibrant start-up ecosystem, from which many business models are emerging.
“Some of them can be competitive and value-additive to the Middle East and hence the natural trend towards geographic expansion,” he said.
The top executives of Investcorp also said along with investment deals, the fund is also actively pursuing opportunities for exits in India and elsewhere.
“We would not want to speculate on upcoming exits, but at any point in time we are active both in terms of new investment opportunities and potential divestments.”
Gaurav Sharma, head of private equity India at Investcorp
Shethia said Investcorp has been quite active in terms of divestments, and that its distributions in the last two years were close to $200m.
“This comes from a combination of exits on the private equity and real estate side,” he said.
On the sectors Investcorp preferred to invest in India, Sharma said the fund is looking to take significant minority positions primarily in companies within the consumer products and retail, healthcare and financial services sectors.
“We, however, continually survey sector landscapes to identify differentiated and proprietary investment ideas,” he added.
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