Faering II (IFC-40323)

Countries
  • India
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 15, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Faering Capital Evolving Fund III Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 29, 2019

Disclosed by Bank Feb 8, 2018


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Project Description

IFC proposes an equity investment of up to US$15 million in Faering Capital Evolving Fund III Limited (the “Fund”), a Mauritius based limited life and limited liability company. The Fund is involved in activities to provide growth capital to mid-market companies in India spanning sectors such as financial services, consumer products/services, healthcare, logistics and other consumption enabling sectors.

People Affected By This Project

(i) Private Sector Development: Access to long-term equity capital is difficult for unlisted companies. The Fund would provide scarce and patient capital as well as expertise and guidance to support value creation. Faering's value-add to investees, through Fund I and Fund II, is visible through the robust growth in financial metrics, high job creation, and strengthening of the underlying business models.
(ii) Financial inclusion and sustainability: Access to employment opportunities for individuals, access to markets for small businesses, and operational, financial and E&S improvements in local businesses.
(iii) Market development: Support to the Indian PE industry at a time when broader investor participation has waned, through support of a local PE firm with long-term potential, operating in a segment of the market that has few growth capital managers.

Investment Description
  • International Finance Corporation (IFC)
Private Actors
  • Faering Capital -- Fund Manager
  • Faering Capital Evolving Fund III Limited -- Financial Intermediary

apital Evolving Fund III Limited is a Mauritius based limited life and limited liability company. The Fund is focused on providing growth capital to mid-market companies in India spanning sectors such as financial services, consumer products/services, healthcare, logistics and other consumption enabling sectors.

Faering Capital International Ltd., a Mauritius company will serve as the Fund’s investment manager and will receive non-binding advice and administrative support from Faering Capital Advisors LLP. 

Contact Information

PROJECT CONTACTS

Investment Manager of Faering Capital India Evolving Fund III 
Mr. Aditya Parekh 
Managing Partner 
aditya@faeringcapital.com 
95 Maker Chambers III, Nariman Point, Mumbai 400021 India 
www.faeringcapital.com 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/