Evolvence India raises $ 65 mn

LONDON: Evolvence India Holdings, a Dubai-based India focused fund of funds has recently raised USD 65 mn to invest in India on London's Alternative Investment Market through an IPO.

The fund is promoted by Evolvence Capital, a private equity consortium based in Dubai with assets of USD 1 bn under management.

The focus of the fund is to invest across India in growth stories, with a special focus on life sciences—including pharma and healthcare. Evolvence, has a portfolio of 65 companies, built up over the two years of its existence, and has deployed about USD 120 mn from its original USD 200 mn. "The reason we chose to list on AIM is because we did not want to raise a large amount of money, and we found this market is ideally suited to companies with our needs," says Jey Jagannathan, chief executive officer.

The India story is attracting global investors in droves, and despite certain international hiccups, London's AIM market has emerged as a popular destination for companies offering global investors a slice in the action. "The listing requirements are as rigorous as any other. What's not mandatory is ongoing disclosures, which companies like ours with a track record and investor-relation focus will do voluntarily," says Mr Jagannathan.

In contrast to the "blind pools", EIH intends to invest up to 70% of the net offering proceeds in EIF, an established private equity fund of funds with a co-investment pool focusing on growth capital in India.

About 10% will go in the focused life sciences fund. Evolvence already has a slice of companies like Centurion bank of Punjab, CCC Limited and as fund investments in Ascent India Fund, Baring India PE Fund II and others.

The company estimates that the private equity investments in India is expected to total USD 7 bn for 2006, but despite some crowding there's still a lot of scope for growth. "There may be 4-5 people getting into the same deal at times, but there are still plenty of good deals to be found," says Mr Jaganathan.