Foreign Trade by Country
Export Import Procedures
Credit Rating
Globalisation
Trade Glossary
International Trade Organisation
Customs
Logistics and Supply Chain Mgmt
eign Investment
International Finance
International Banking
International Taxation
International Accounting
Anti Dumping
Trade Agreements
Intellectual Property
International Sanctions
World Trade Organisation
Environment
International Standards
Category: International Finance Sub-category: Foreign Investment
Document type: news
International Finance Corporation (IFC) is proposing an equity investment of $15 million that is in turn 20% of the fund's total committed capital in CapAleph Indian Millennium Fund (CapAleph), which targets to raise $150 million to finance small and medium-sized companies.
The fund is a Mauritius registered one and the Fund Manager, the CapAleph Advisors India Private Limited, are based in Bangalore.
CapAleph Indian Millennium Fund has a target fund size of $150 million and IFC is proposing an equity investment of $15 million or 20% of the Fund's total committed capital.
The fund will support small and mid-sized companies in incipient to early stages of evolution and growth in emerging industry segments through a 'buy and build' strategy.
CapAleph will control all the significant minority stakes and investments that consist primarily of equity and equity-linked instruments, according to the project document.
The five high potential segments, which the fund will focus, include technology based businesses, infrastructure support services, new healthcare services, education and skill development and emerging consumption trends.
According to an IFC official, the target investee companies will be SMEs, which are capital constrained and have very limited access to bank debt or the public markets to finance their growth strategies.
This project involves IFC investment in a private equity fund and has been classified as Category FI.
The indicative pipeline includes sectors such as chemicals, manufacturing and engineering. These sectors are likely to have environmental and social concerns mainly around occupational health and safety (OHS), labor, air and water pollution, and waste management.
IFC has invested in a number of India focused funds. It is also considering an investment of $15Mn In Zephyr Management's third India focused fund - Zephyr Peacock India Fund III.
IFC may also invest $15Mn in India Knowledge-Manufacturing Fund I. The fund managed by Forum Synergies (India) PE Fund Managers Pvt. Ltd will invest in healthcare, information and communication technology, engineering (including related manufacturing and services), and clean technology. It may also invest $20Mn in Pragati India Fund, which will focus on investing in SMEs from low income states of India including Jharkhand, UP, MP, Chhattisgarh and Orissa.
External Links:
IFC, also known as International Finance Corporation, promotes sustainable private sector investment in developing countries. IFC was established in 1956, and is a member of the World Bank Group. It is headquartered in Washington, D.C., United States. IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world.
-
