Global multi-strategy private markets investment firm Siguler Guff has raised over $110 million for its upcoming $300 million Global Emerging Markets Growth Opportunities Fund II (GEMGO II), the company announced on Tuesday.
The fund will focus primarily on India with plans to invest over $250 million across 8-10 mid-market companies in core consumption-driven sectors such as consumer, healthcare, technology, technology-enabled services, and financial services.
Beyond India, the fund will actively evaluate investment opportunities in SE Asia and capitalise on global technology prospects within the India-US investment corridor, the company release added.
GEMGO II is the firm’s second emerging markets growth fund. Its predecessor raised $240 million in 2021. Including participation from LP co-investors, the fund has deployed $260 million in India over the past five years, it said in the release.
GEMGO II has received strong support from existing and new investors, including development finance institutions, US pension plans, financial institutions, single-family offices, and high-net-worth individuals globally, it added.
Siguler Guff expects to hit the final close of GEMGO II in the next 12 months.
Siguler Guff partner and co-head of emerging markets Shaun Khubchandani had in an interview with DealStreetAsia sounded a bullish note on India’s prospects citing the country’s robust fundamentals such as a growing middle class, good democratic governance, and economic dynamism.
“India is one of the most attractive investment destinations globally and we intend to substantially increase investment activity in the country over the next five years,” Khubchandani said in the release.
Siguler Guff’s notable investments in India include consumption-oriented businesses including affordable fashion retailer Baazar Kolkata, domestic cardiovascular medical devices platform Relisys, South India-focused consumer electricals retailer Luker, Gujarat-based corporate hospital chain Sterling Hospitals, and homegrown social media and news platform Verse Innovation.
The investment firm has also invested in profitable high-growth mid-cap public companies such as Jyothy Labs, Dalmia Bharat, City Union Bank, IFB Industries, Kesoram Industries and Spandana Sphoorty, among others.
Siguler Guff has $16 billion in assets under management (AUM) and $5 billion of AUM for its emerging markets platform, which includes over 80 underlying fund managers and 45 direct equity investments.