JM Financial Private Equity has closed its second India-focused fund with commitments of more than ₹600 crore from Quilvest Group and Small Industries Development Bank of India (Sidbi) among others, two people aware of the matter said.
The PE arm of Nimesh Kampani-led JM Financial Group had achieved the first close of its second fund at ₹300 crore in April 2018. A first close allows a fund manager to start investing the capital that was raised, while allowing it to continue to raise more funds from investors.
Luxembourg-based global wealth manager and PE firm Quilvest invested more than ₹100 crore in the second fund, along with Indian development financier Sidbi that put in another ₹122 crore, said one of the two persons, both of whom spoke on condition of anonymity.
“Among the other limited partners were Federal Bank Ltd and National Bank for Agriculture and Rural Development (Nabard), and some family offices and independent investors," the person added.
While JM Financial PE declined to comment, emails sent to Quilvest, Federal Bank, Sidbi and Nabard remained unanswered.
So far, JM Financial India Fund II has deployed over 40% of its capital across five investments, including its latest in nutraceutical firm Innovcare Lifesciences Pvt. Ltd.
The sector-agnostic growth fund invests in high-growth, small- to mid-market companies, focused on financial services, consumer, information technology (IT) and information technology-enabled services (ITES), infrastructure services and niche manufacturing sectors.
Its past four investments include India Home Loan Ltd, an affordable housing finance company; Vendiman Pvt. Ltd, which operates snacks and beverages vending machines across India; Isthara Parks Pvt. Ltd, an operator of co-living spaces; and Spandana Sphoorty Financial Ltd, a microfinance institution that got publicly listed on 19 August.
The firm had hit the road to raise its second fund in 2016 after it appointed Darius Pandole, a former partner at New Silk Route (NSR) Advisors Pvt. Ltd, to head the group’s PE business.
Its first fund, JM Financial India Fund, made around 13 investments and has completely exited around 10 of them and part-exited the others.
The first fund committed capital in companies such as Mumbai-based pharmaceuticals firm DiagnoSearch Life Sciences Pvt. Ltd, salon chain Enrich, offshore logistics services firm Samson Maritime Ltd, farm equipment maker International Tractors Ltd, auto parts company Sona Group, knowledge process outsourcing firm PreMedia Global and microfinance firm Spandana Sphoorty.
During January-August 2019, Indian private equity and venture capital firms raised funds worth $7.2 billion, according to data from EY India. This is 32% more than the $5.5 billion that these firms raised in the same period last year.