Capvent Eyes $150M India Fund

Zurich-based Capvent, a fund-of-funds that manages about $700 million in assets, has announced its intent to form its own fund of $150 million for a new Capvent India Growth Fund.

Varun Sood, founder and managing director of Capvent, says that his firm thought long and hard about whether to raise a fund with a wider geographic investment scope. In the end, Sood says, “We made the decision this would be an India only fund, although we considered China. But there are more private equity opportunities in India, and more exit opportunities, too.”

Sood says that the group has LPs committed to the fund, but it’s too early to disclose names.

Capvent has been in India for the last two years, studying the market and making co-investments with Baring India Private Equity Fund and GW Capital India.

Sood acknowledged it’s unusual for a fund-of-funds, like a Capvent, setting up its own fund rather than investing in primary managers, But he says that there were only a handful of funds in India that meet his firm’s investment criteria, and Capvent has already backed those firms as an LP.

The firm’s current staff of 10 work in Bangalore. The new fund will invest across several private equity classes, including venture capital, growth, mezzanine financing and PIPES. Sood said the fund would invest in the services sector, though the focus is still in the early days of formation. Sood expects the fund to close before the end of this year.