A91 Emerging Fund to raise $250-300 million to support SMEs

International Finance Corporation to invest up to $25 million for a 20% stake

A Private equity fund called A91 Emerging Fund I LLP, which is backed by International Finance Corporation, is looking to raise $250-330 million to support small and medium-sized enterprises in India.

International Finance Corporation will invest $25 million into the fund. The proposed investment will be in the form of equity, and will not exceed 20 per cent of the aggregate commitments, said the World Bank’s investment arm.

The fund is planning to invest in 10-15 companies in the early growth/ late venture capital stage of development. Target sectors include consumer goods and services, healthcare, financial services and technology.The fund’s ticket size would range between $5 and $30 million.

IFC expects the fund to support first-generation entrepreneurs who will bring tech-enabled solutions to disrupt traditional business models. The fund would target SMEs that have reached an inflexion point and need capital to accelerate growth.

The Fund will be managed by 4Point9 Capital Advisors LLP. The fund manager is led by VT Bharadwaj, Gautam Mago and Abhay Pandey, who each have over a decade of experience investing in early-stage private equity in India.

The Fund is an LLP based in India and will pool funds from domestic and international investors through A91 Partners Fund I (a Mauritius limited company) and A91 Partners Trust (a trust settled under the Indian Trusts Act, 1882).