After foreign portfolio managers pumped more than $40 billion into Indian stocks and debt on hopes of an economic revival with the new Narendra Modi government at the helm, investors are now turning toward Indian private equity funds. After two years of muted fund raising by India-focused PE funds, marquee investors are now loosening their purse strings.
Renuka Ramnath’s Multiples Alternative Investment has raised $350 million toward the first close of its second fund. Global institutional investors such as Canadian Pension fund CPPIB, Sofina, PGGM, BlackRock and CDC have invested in the first round of the $550 million fund. Last week, Rabo India’s agri business fund raised $200 million toward the first close.
“Growing domestic consumption, results of the recently concluded general elections that gave stability at the Centre and declining global commodity prices have created a trifecta to position India once again as one of the top investment destinations in the world,” said Kalpana Jain, senior director, Deloitte India, in a recently released report.
The fund raising by Multiples is significant considering that limited partners or LPs, investors in such funds, have been disappointed with India investments.