Alternative asset manager Investcorp is planning to increase its exposure to India in the next five years, Bloomberg reported on Monday, citing an interview with the firm’s executives.
The firm currently manages just over $600 million in India, which is a mere 1.5% of its $42.7 billion worth of global assets. Investcorp expects to have assets worth $5 billion in the country in the next five years, Mohammed Alardhi, executive chairman of the firm, told Bloomberg.
Investcorp’s plans for the country include a new credit strategy, stronger emphasis on infrastructure deals and finding a target for its India-focused blank-cheque company, Investcorp India Acquisition Corp., which raised $259 million in a US initial public offering in May, according to the report.
The firm did not immediately respond to a request for confirmation by DealStreetAsia.
Investcorp, which typically participates in the last or penultimate pre-initial public offering fundraises, is seeking bigger-ticket deals to keep pace with India’s startups, Kapoor said. More companies are raising larger pools of capital, and Investcorp’s sweet spot, which used to be around $50 million, is now between $75 million and $100 million, including co-investments, Investcorp’s co-CEO Rishi Kapoor told Bloomberg.
Its investment plans come at a time when global funds, including Sequoia, Accel, LightSpeed and Matrix Partners, have either raised new funds or are in talks to raise capital to tap tech investment opportunities in India. Earlier this year, Sequoia India said it raised a whopping $2.85 billion across three funds to invest in the Indian and Southeast Asian markets while Accel India mopped up $650 million and Elevation Capital (formerly Saif Partners) raised its largest-ever fund at $670 million.
Investcorp, which counts Abu Dhabi sovereign fund Mubadala Investment Co. among its shareholders began its operations in India in 2019. The midmarket-focused firm has made investments in India across consumer, healthcare, wellness and financial services, with an overlay of technology, according to Kapoor.
Investcorp, which manages alternative investments in private equity, real estate, absolute return investments, infrastructure, credit management and strategic capital, has backed several Indian startups like Xpressbees, Wingreens, FreshToHome and Incred.
Investcorp will also focus on providing financing to the portfolio companies of private equity firms, Kapoor told Bloomberg, though it declined to say when such a credit fund will launch.
The company is currently raising another India-focused fund, targeting $500 million, which is more than double its predecessor, which wrapped up with $142 million in 2019, according to Bloomberg. Given its India ambitions, Investcorp’s latest fund could be even larger than that, the report said.