ChrysCap­i­tal Taps GIC, Other In­vestors to Raise $600 mil­lion

PE out­fit’s 7th fund has al­ready put money in 2 cos — L&T In­fotech and Hero FinCorp

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

New Delhi: Home­grown pri­vate eq­uity out­fit ChrysCap­i­tal has raised a sev­enth fund ac­cu­mu­lat­ing $600 mil­lion from in­vestors such as the Gov­ern­ment of Sin­ga­pore In­vest­ment Cor­po­ra­tion (GIC) and Har­vard Man­age­ment Com­pany, its manag­ing direc­tor and head of fund rais­ing, Gau­rav Ahuja, told ET. The fund, which was set up in the late 1990s, was among the found­ing in­vestors in pub­licly traded YES Bank and counts among its port­fo­lio of past in­vest­ments, blue chip com­pa­nies such as Idea Cel­lu­lar, Axis Bank and HCL.

The lat­est fund was raised in a lit­tle over a year “de­spite a tough fundrais­ing en­vi­ron­ment fac­ing In­dian pri­vate eq­uity firms”, ChrysCap­i­tal said in a note.

“This is a large fund raise by any stan­dard and clearly in­di­cates that in­vestor sen­ti­ment is pos­i­tive to­wards In­dia,” said Ash­wath Rau, se­nior part­ner at law firm AZB & Part­ners. Founded by Ashish Dhawan, ChrysCap­i­tal wit­nessed a man­aga­ment tran­si­tion five years ago when Dhawan de­cided to step down and pur­sue other in­ter­ests. Kunal Shroff, a veteran who had been with the fund since its in­cep­tion, stepped into Dhawan’s role even­tu­ally and now leads the firm. The lat­est fund has at­tracted in­ter­est from a com­bi­na­tion of in­vestors, re­ferred to as limited part­ners (LP), in the pri­vate eq­uity in­dus­try, that in­clude in­sur­ance com­pa­nies, univer­sity en­dow­ments and fam­ily of­fices, ChrysCap­i­tal said. ChrysCap­i­tal has made 80 in­vest­ments in In­dia and ex­ited 60 of these since its in­cep­tion. The fund claims to have re­alised over $4 bil­lion from the sale of its in­vest­ments.

“We have backed top qual­ity en­trepreneurs over the years. Our abil­ity to in­vest in listed se­cu­ri­ties and pri­vate se­cu­ri­ties has pro­vided us the flex­i­bil­ity to pro­vide healthy re­turns across our port­fo­lio at any given point in time,” said San­jiv Kaul, Part­ner at ChrysCap­i­tal.

HEALTHY RE­TURNS

The fund’s port­fo­lio of in­vest­ments com­prises com­pa­nies where it owns mi­nor­ity stakes as well as those where it has pur­chased con­trol­ling fi­nan­cial in­ter­ests. It has in­vested in sec­tors as var­ied as busi­ness ser­vices, fi­nan­cial ser­vices, phar­ma­ceu­ti­cals, health­care, con­sumer and man­u­fac­tur­ing.

The newly-raised fund, ChrysCap­i­tal VII, has al­ready made two in­vest­ments, the first in mid-tier IT ser­vices firm L&T In­fotech, and the sec­ond in Hero FinCorp, an NBFC floated by the Hero Group.

The core team com­prises Shroff, manag­ing part­ner and three other part­ners, in­clud­ing Kaul, San­jay Kukreja and Ash­ley Menezes.

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