Original disclosure @ IFC website
Updated in EWS Jul 29, 2022
Disclosed by Bank Apr 25, 2022
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According to IFC, the proposed investment is an equity investment of up to US$35 million, not exceeding 20% of total Commitments with up to US$20 million in co-investment envelope under the delegated authority, in India Business Excellence Fund IV (the “Master Fund” or “IBEF IV”), a trust constituted under the Indian Trusts Act 1882 and registered as a Category II Alternative Investment Fund (“AIF”) with the Securities and Exchange Board of India (“SEBI”) through India Business Excellence Fund IV G (“GIFT Fund”), a trust formed in Gujarat International Finance Tec-City, registered with the International Financial Services Centre Authority (“IFSCA”) under the SEBI AIF Regulations 2012, as a Category II AIF (together known as the “Fund”). The Master Fund is targeting ~US$588 million (INR 45,000 million) in commitments to invest in 10-15 companies in consumer, financial services, life sciences, and niche manufacturing sectors.
The Master Fund will not invest in any 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 d) significant occupational health and safety risks. The Master Fund will also not invest in any coal-related activities, or any financial institution substantially exposed to high-risk sectors. Hence, the E&S risk of the proposed investment is medium, and the project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability. IFC's applicable performance requirements for this project will be i) the Exclusion List; ii) the host country laws and regulations; and iii) the IFC Performance Standards.
The Master Fund is seeking to raise ~US$588 million (INR 45,000 million) in aggregate capital commitments. IFC proposes an equity investment of up to US$35 million (capped at 20% of the aggregate capital commitments) in the Fund. 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 Master Fund will be managed by MO Alternate Investment Advisors Private Limited (“Fund Manager” or “MOA”), a private limited company. The Master Fund’s sponsor is Motilal Oswal Financial Services Limited (“MOFSL”), (“Sponsor”), a public limited company incorporated in India. The Master Fund have engaged MOA to carry out investment management and administrative duties. The Fund Manager is led by Vishal Tulsyan and Raamdeo Agrawal.
The Master Fund is a trust constituted under the Indian Trusts Act 1882 and registered as a Category II AIF with SEBI. The GIFT Fund is a trust formed in Gujarat International Finance Tec-City, registered with the International Financial Services Centre Authority under the SEBI AIF Regulations 2012, as a Category II AIF.
MO Alternate Investment Advisors Pvt. Ltd.
Chief Operating Officer
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