BanyanTree Growth Capital nears $150m in Fund II second close


India-focused BanyanTree Growth Capital is entering the final three months of fundraising for its second investment vehicle after holding a second close of almost $150m.

The firm hit a $100m first close for BanyanTree Growth Capital II in July, and the second close has moved it to within touching distance of its $150m to $175m target.

BanyanTree’s second fund has received re-up commitments from Dutch development investor DEG and German counterpart FMO, which both anchored the $100m Growth Capital I vehicle closed in summer 2010.

The closed-end fund will have a ten-year term, with the possibility of two one-year extensions subject to LP approval.

New investor IFC has committed $25m to the fund, while the US development finance arm OPIC has proposed a loan guarantee of up to $35m.

The latest fund will continue to invest in Indian SMEs operating in overlooked manufacturing and niche industrial sectors.

Fund I, which is now fully committed, has invested in companies including Deepak Fasteners, a manufacturer of industrial fasteners such as nuts and bolts and supplier to the F1 racing industry.

The firm has also provided growth equity for Axiom Cordages, Trimax IT Infrastructure Systems, GEI Industrial Systems, Dee Development Engineers and EPC.

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