The Hindu Business Line : ChrysCapital sets up new fund at $1.25 b

New Delhi, Aug. 2 ChrysCapital on Thursday announced the establishment of its fifth and largest fund, ChrysV at $1.25 billion, which has participation from 75 global investors. With this, the company now has under its management over $2.25 billion, making it the largest India focused private equity fund.

Since commencement in 1999, the company has made 40 investments in the country across sectors that leverage growth. Of these, in four investments, it bought over the majority stake.

Planning to stick to its focus sectors — business services, consumer goods and services, financial services, infrastructure, manufacturing and healthcare plus pharmaceuticals — this time round the company expects that its deal sizes would be anywhere between $30 million and $300 million for a typical holding period of four to seven years.

“Going forward, buyouts could increase and may comprise one-fourth of our investments, while minority equity in public\private enterprises would be at three-fourths,” said Mr Ashish Dhawan, Senior Managing Director, ChrysCapital, putting returns on investments in previous funds at 30-35 per cent.

However, Mr Dhawan emphasised that the situation in the next five years may not be of as high growth as the last five years, hence, their investors expect minimum returns of 20-25 per cent and are committed to a long holding period.

In the past, ChrysCapital has invested in companies such as Idea Cellular, MphasiS, Spectramind, Suzlon and UTI Bank. Its other investments include Hathway in the consumer sector, INTAS and Mankind in pharmaceuticals, Gammon and IVRCL in infrastructure, Yes Bank, Centurian Bank and Shriram Group in the financial services sector and Moser Baer in the manufacturing space.

“Our performance has been amongst the best globally. We have proven to our global investors that India is an extremely attractive investment destination. With Fund V, we will now be able to deploy larger amounts of growth capital as well as explore buy-out opportunities,” said Mr Dhawan, adding that its track record includes an internal rate of return of 60 per cent since January 2000. The company has a team of 13 professionals, with specialists for each sector.

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