Investcorp, an alternative investment manager, is reportedly aiming to expand its business in India to $1.5 billion (approx INR 106 crore) in assets under management over the next five years, reported Mint.
The development comes months after the Bahrain-based Investcorp entered into the Indian market in January through the acquisition of the private equity and real estate investment businesses of IDFC Alternatives.
“Our vision for the firm is that we want to be a respected global investment firm in the alternatives space. Any gaps we have in the alternative space, we want to fill them. So, we didn’t have an infrastructure business, we started an infrastructure business. We were not in India; we are now in India. We weren’t in China; we are now in China. In the US, we started there four decades ago and now we want to go deeper into that economy,” said Mohammed Alardhi, executive chairman at Investcorp.
The company Investcorp, presently has $28 billion worth of assets under management.
Alardhi further said that the company is interested in India “because it is one of the fastest-growing economies in the world, it’s the biggest young population there is in the world, hard-working people and entrepreneurial”.
“We want to be a part of this growth. Like in any other economy, there are bottlenecks, there are weaknesses here and there, but we’re here for the long-term,” Alardhi added.
In July this year, Investcorp had closed its maiden India-focused private equity fund at around $150 million. The fund is a top-up of IDFC Alternatives’ fourth PE fund, which managed to raise around $70 million before it was acquired by Investcorp.
“One of the themes in our investment thesis is the mass-consumption story, but for us it is a little broader than just the consumption of goods. It is also making them available in an affordable format and creating access to good quality goods and services. This includes healthcare, financial services, mass-market consumption, consumer-tech,” said Rishi Kapoor, co-chief executive of Investcorp.
In overseas markets, Investcorp’s strategy is largely focused on acquiring controlling stakes in firms. In India, however, it is currently scouting for minority growth capital investments.
“As the market matures, it is inevitable that buyouts will become a greater proportion of the overall PE. Right now, if it is around 20%, it may become higher in India and we will also evolve with the market,” Kapoor added.
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