Motilal Oswal Private Equity Advisors’ co-chief executive Somak Ghosh has reportedly parted ways with the firm to launch his own $50m fund to make early stage investments in India.
The Contrarian Opportunities Fund I will provide Series A funding of between $500,000 to $5m in two to three rounds, said the Asian Venture Capital Journal (AVCJ).
The new vehicle will focus on the education, healthcare, housing, energy and agricultural sectors and will have a ten year investment cycle, which could be extended by a further two years.
The IRR target has been set at 22 per cent in Indian rupees, while losses will be capped at 10 per cent of invested capital.
Ghosh, pictured, told the publication, “There is an opportunity in Series A as fewer funds invest at this stage, compared to Series C or D investments.”
While with Sustainable Social Impact Fund, he initially planned to launch the Sustainable Social Impact Fund, which will now likely be scrapped, a source told the AVCJ.
Motilal held an $87m second close for India Business Excellence Fund in August having picked up commitments from LPs including Squadron Capital.
Earlier this month the firm received a $25m commitment from IFC for the fund.
The INR5.5bn first IBEF is now fully invested.
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