Faering II (IFC-40323)

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
Mar 15, 2018
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 Evolving Fund III Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 15.00 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 Mar 29, 2019

Disclosed by Bank Feb 8, 2018

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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.

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
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a 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
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
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.

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
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.

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/

How it works

How it works