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GW Capital Partners closes India Value Fund II on $150m
08/07/2005. Source: AltAssets. 
Indian private equity firm GW Capital has closed its second fund with commitments of $150m. India Value Fund II attracted capital from all of the investors in its predecessor fund as well as a string of blue chip international institutions. New limited partners included Partners Group, CDC, Grove Street Advisors and PPM. The level of international demand for the country-specific fund demonstrates the mounting interest in Asia as a destination for private equity investment as well as the firm's track record.
The firm focuses on growth and buy-out transactions in the SME sector, typically making equity investments of between $15m and $20m.
GW Capital's first fund, a $35m vehicle raised in 2000 entirely from local institutions, made seven investments, of which three have already been realised and a fourth is close to being sold.
Vishal Nevatia, the CEO of GW Capital, said growth in the Indian market had really taken off in the last couple of years as a consequence of an upturn in exit activity. 'In the last two years there have been more than 75 exits of all types and there is a lot more confidence in the market now. There are a lot more players and more international groups. There has been a huge change in the private equity environment.'
He estimated there were now about 25 active groups in India, compared with just ten in 1999. One consequence of this population growth had been a greater segmentation, with the international groups focusing on the larger end of the market and the local groups still concentrated on the SME sector.
Nevatia said this level of growth was expected to continue for the foreseeable future. 'We clearly see the next five to ten years as being extremely exciting.'
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