Mega Deals: IFC plans to invest about USD 20 mn in PE Faering Capital’s third fund

According to IFC, the investment is subject to a cap of 20 per cent of the final fund size of Faering III, a mid-market private equity (PE) fund focused on growth equity transactions in India. 

The fund is targeting a total commitment of $300 million and will be managed by Faering Capital Advisors LLP. 

IFC will not be the single largest investor in the proposed Faering III. 

Faering III will continue to focus on its key strengths of targeting growth stage mid-market companies in financial services, consumer and digital, pharma and healthcare, and other sectors such as business services. 

The new Fund is expected to size its average ticket per company in the range of $15-40 million in 10-12 companies. 

IFC said a delegated authority co-investment envelope for an amount of up to $20 million in potential co-investments in the Faering III’s portfolio companies is also being proposed alongside the Fund commitment. 

Faering Capital also manages Fund I ($150 million) and Fund II (US$200 million), IFC said.