India Build Out Fund Investment launches follow-on fund; aims to raise Rs 500crore

MUMBAI: India Build Out Fund (IBOF) Investment today said it has launched a follow-on fund with a target to raise up to Rs 500 crore from Indian investors and an equal amount from offshore ones.

The fund, IBOF-II, will primarily be invested in small and mid-size firms targeting domestic consumption sectors. IBOF Investment will continue to leverage its experience of investing in healthcare, education and consumption segments, a company statement said here.

"We hope for initial closing of this fund in September and full closing at a later date," it said.

India Build Out Fund I (IBOF-I) was a Rs 434 crore private equity fund raised from domestic institutional and HNIs.

IBOF-I has been fully invested in six high quality firms across healthcare, education and consumption related sectors.

IBOF-I said it has now sold its entire stake of 20 per cent in Krishna Institute of Medical Sciences (KIMS) Hospitals to a large private equity fund and returned over 50 per cent of fund corpus from all exits so far.

IBOF-I was the first institutional investor in KIMS Hospitals, a prominent healthcare service provider in Andhra Pradesh and Telangana, having one of the largest network of multi-specialty hospitals in the two states with 1,800 beds spread across half a dozen hospitals in cities.

"The successful exit from Krishna Institute of Medical Sciences is a validation of our investment philosophy of value creation through a value-added partnership approach with the investee company's management teams.

"Also, we recently divested significant part of IBOF-I's investment in CARE Ratings of around 2.3 per cent of our fund holding," said IBOF Investment Management Principal Managing Partner Rajesh Singhal.