US buyout major Carlyle is reportedly preparing to raise a fund targeting Indian businesses and launch a non banking financial company (NBFC).
The fund is expected to target the retail, defence and insurance that don’t get much attention from foreign investors, said the Economic Times.
It also noted that such strategy of raising a fund and providing banking services via an NBFC is being increasingly adopted by large private equity firms including KKR, Everstone Capital and Warburg Pincus.
Fellow private equity firm Avendus Capital has recently acquired an NBFC and is currently raising a $25m fund for the unit following the launch of its India Opportunities Fund III.
Other firms that have recently bought stakes in Indian NBFC include ChrysCapital and IFC.
In November Carlyle, which has an office in Mumbai, was reported to be bidding for a controlling stake in Indian electronic payments business Prizm Payments and eyeing a minority stake in Mumbai-based Warburg-backed outsourcer WNS.
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