Mumbai-based private equity firm Ambit Pragma has reached a first close of $77m for its second investment vehicle.
The firm’s latest small-cap buyout and growth fund will target the entertainment, healthcare, logistics, infrastructure and consumer goods sectors.
Ambit hopes to reach a final close of $150m for the fund, and will reinvest the cash in companies with revenues of between $5m and $15m.
The close was aided by an anchor investment from the International Finance Corporation, the investment arm of the World Bank.
IFC regional lead for private equity Vikram Raju said, “IFC believes that Ambit Pragma`s distinctive engagement model provides a strong platform for sustainable growth of investee companies in the small and medium enterprise segment.
“IFC was an anchor investor in Ambit Pragma Fund I in 2008 and we are pleased to have an opportunity to play the same role in Ambit Pragma Fund II as well.”
Ambit partner Atul Kunwar said, “India`s emerging businesses showcase strong entrepreneurial flair, yet have limited fund raising options to help realize their strategic leadership ambitions.
“This presents a compelling opportunity for Ambit Pragma to invest in high potential companies and support them with capital and real world operating expertise.”
In March Ambit injected a further $1.4m into portfolio company Spear Logistics, a contract logistics business based in Pune, India.
The financing, which followed an investment made in 2010 through the firm’s first fund, will be used to further the company’s expansion plans.
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