Asian mid-market performing credit platform BPEA Credit has committed to investing Rs 250 crore ($29.8 million) in DMW Group, a precision manufacturer of components for the automotive, agricultural, aerospace, flow control, and railway sectors.
DMW recently bought a controlling stake in a foundry business to integrate backwards into the value chain and increase the overall product offering to its customers. BPEA Credit said the funds will be used by DMW Group for capital expenditure, working capital, and acquisition financing for the foundry business.
“The manufacturing industry in India is expected to grow rapidly, supported by government efforts and the China+1 strategy of large global organisations,” said Anupam Goenka, Managing Director, BPEA Credit.
Earlier in 2022, the Hong Kong-headquartered entity made headlines when its PE arm was merged with Swedish investment behemoth EQT in a deal worth 6.8 billion euros ($7.5 billion).
BPEA’s credit arm has since operated as a separate entity, even as PE billionaire Jean Salata, who currently serves as the chairperson of EQT Asia and head of Private Capital Asia, continues to be a passive minority investor.
In the 11 years since its inception, BPEA Credit has raised four funds and invested over $1.1 billion across portfolio companies in multiple sectors. Its investment focus is on Asia ex-China, with an emphasis on India and Southeast Asia. It counts digital lending platform mPokket and flexible workspace provider WeWork India among its portfolio companies.
It is now in talks to be taken over by Wall Street’s marquee investment firm Apollo Global Management. It is also currently understood to be in the process of launching an India-Southeast Asia fund with a targeted size of $750 million.
Last month, BPEA Credit hit the first close of its Select Short Term Income Fund-I (SSTIF-I), with a target fund size of Rs 750 crore.