According to IFC, "the proposed invesment is an equity investment of US$20 million, capped at 20% of final fund size into Faering Capital International Growth Fund III (“Fund”, “Faering III”), a mid-market private equity (PE) fund focused on growth equity transactions in India and targeting US$300 in total commitments. The Fund will be managed by Faering Capital Advisors LLP (the “Manager”). Consistent with its prior funds, Faering III will continue to focus on its key strengths of targeting growth stage mid-market companies in financial services, consumer and digital, pharma and healthcare, and other sectors such as business services."
The Fund proposes to make investments in growth-stage mid-market companies in India.
ENVIRONMENT AND SOCIAL STANDARDS
Most transactions are expected to be of medium to low E&S risk, therefore this project has been categorized as FI-2 in accordance with IFC's Environmental and Social Sustainability Policy. The Fund will not invest in coal-related activities, higher risk business activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant Occupational Health and Safety risks, as well as in financial institutions other than low-medium risk. Faering will be required to manage the E&S risks of Faering 3A-3B investments consistent with the requirements of the IFC Exclusion List, applicable national E&S laws and regulations, and IFC Performance Standards where applicable.
The new Fund is expected to size its average ticket per company in the range of US$15-40 million in 10-12 companies. A delegated authority co-investment envelope for an amount of up to US$20 million in potential co-investments in the Fund’s portfolio companies is also being proposed alongside the Fund commitment.
The target size of the Fund is US$300 million. IFC’s proposed investment in the Fund is up to US$20 million, not to exceed 20% of total Fund commitments, and IFC not to be the single largest investor.
The Fund will be managed by Faering Capital Advisors LLP, co-led by its two founding partners, Aditya Parekh and Sameer Shroff who have substantial experience in the Indian PE Market and have strong sector experience
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