Faering Capital International Growth Fund III (IFC-45210)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 15, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
FAERING CAPITAL INTERNATIONAL GROWTH FUND III
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 31, 2021

Disclosed by Bank Apr 13, 2021


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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.                                 

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

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How it works