US PE fund GCA plans to invest $200 mn in India

MUMBAI: San Francisco-based private equity fund Gerken Capital Associates is looking to foray into the Indian markets with an initial corpus of $200 million. The company, which manages assets worth $1 billion, has appointed Alok Gupta, former chief of Axis Private Equity, as managing director of its India operations. GCA, which manages funds for institutional and high net-worth clients, will enter India with its emerging markets private equity fund of funds.

“India is a big economy, while there are a large number of funds, those with local presence and disciplined approach can make good returns. We are looking to invest about $200 million in India,” said Gupta, who has an experience of investments in infrastructure, telecom and technology sectors, among others.

The global macroeconomic slowdown has hit private equity spends, though low valuations present a good opportunity for PEs to invest. However, global funds such as Jacob Ballas PE are looking to invest in the India growth story.

“India has a great tradition of entrepreneurship and its demographic profile, large middle-class and increasing internet penetration are some of the drivers helping its growth,” said Gupta.

GCA’s flagship investment products include EMF VII, an emerging market private equity fund of funds, and GFI — a global fixed income fund.