Investcorp to boost investments in India with up to three deals a year

Investcorp, a leading alternative asset manager, envisions expanding its investments in India by potentially undertaking two to three deals annually, with each investment ranging from $50 million to $75 million, according to Gaurav Sharma, head of India investment business at Investcorp. The company's bullish outlook on India is driven by the burgeoning economy and the availability of lucrative opportunities across various sectors.

Sharma cited business services, healthcare, pharma, technology, consumer, and industrials and manufacturing as sectors that are being targeted for investments.

In recent years, Investcorp has allocated $1 billion in private equity investments in mid-market companies in India, including notable acquisitions such as NephroPlus, Global Dental Services, FreshToHome, Unilog, and NuSummit. The company's strategy involves evaluating over 150 companies annually and selecting a few for investment. Investcorp typically acquires a minority stake of 10 to 40 percent or takes a majority stake in a company.

To fund new investments, Investcorp is utilizing an India-focused fund, funded by various sources including global institutional investors, investors from Gulf countries, private wealth franchises, Indian investors, life insurance companies, banks, and family offices. Currently, the company is investing in a $500 million fund, with plans to raise another fund once the current one is exhausted.

The Indian economy has demonstrated robust growth, with a 7.8% growth in the quarter ending June despite global disruptions due to the Iran war. The International Monetary Fund projects the country's economy to grow by 7.1% in 2023 and 6.5% in 2024. Sharma remains optimistic about India's growth prospects and the company's continued active investments in the country.