Private equity firm Multiples Alternate Asset Management, which is mainly focused on mid to late-stage equity investments, has secured $560 million as part of its third India-dedicated PE fund.
The Fund-III, which was launched in February 2018, has been backed by the National Investment and Infrastructure Fund (NIIF) along with the Canadian pension fund Canada Pension Plan Investment Board (CPPIB) and IFC.
Multiples had marked the first close of the third fund in September last year after raising $400-500 million and is targeting final closure of $750-800 million in the next 4-5 months.
The Mumbai-based firm would utilize the amount of Fund-III towards investing in mid-market companies and will focus on financial services along with consumer, healthcare, and IT services.
Founded in 2009, Multiples is a private equity firm specializing in mid to late-stage equity investments and growth capital in mid-sized companies. The firm provides capital for buyouts, management-led buyouts and spin-offs of divisions from large Indian groups.
The Renuka Ramnath led firm, which had raised its first fund worth $405 million in 2011, targets investments between $15 million and $50 million.
Multiples had closed its second fund of $700 million (including a $150 million co-investment pool) in 2017.
Importantly, the first two funds have delivered an average internal rate of return (IRR) of 30% to investors, said an ET report.
So far, the PE firm has invested in about 18 companies and has close to $1 billion under management.
Its portfolio companies include Delhivery, Dream11, Encube, LivPure, HR firm PeopleStrong, Arvind Fashions, and Vastu Housing Finance, among others.
Apart from the backers mentioned above, Multiples PE’s limited partners in the past have included Dutch pension fund PGGM, the UK’s CDC Group, and pension & sovereign funds from Europe and West Asia.