The Hindu Business Line : GW Caps identifies SMEs for India Value Fund

Mr Vishal Nevatia, Chief Executive Officer of GW Caps, said the IVF would be investing mostly in the small and medium capital industries. It comprises two funds, one with a corpus of Rs 750 crore and the other Rs 150 crore. Investors in these funds are mostly international pension funds, university funds and fund of funds. Most of these investors are the US-based but Mr Nevatia declined to name them.

He said investments of these funds are broad based. The first fund has so far invested in media, healthcare, supply chain and logistics. The second one has invested in precision engineering and outsourcing enterprises.

He said none of the funds' investments is in listed companies. The funds are prepared to lock in for as much as 10 years and expect returns only after five years.

The fund managers, he said would bring in their industry experience into the companies and "hand hold them" so that they grow into large enterprises. It is only at this point that they would think of an exit. In fact, Mr Nevatia said investors in these funds are also aware of the long-term nature of the investments.

But the return expectations are also high. Mr Nevatia said, "We expect to generate returns of at least 30 per cent at the end of the lock in period." The exits of the funds out of these investments would be either in the form of a strategic sale or through an initial public offering, when the enterprises mature, he added.

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