US-based investment firm Wexford Capital LLC has entered India with a $100 million private equity fund through Baseline Partners Ltd.
Launches Baseline Capital Fund to invest in mid-sized cos
HYDERABAD: US-based investment firm Wexford Capital LLC has entered India with a $100 million private equity fund through Baseline Partners Ltd, a new private equity firm that is eying investments in the range of $10-25 million in medium-sized companies over the next one year.
Howard Endelman, Partner, Baseline Partners said Wexford, which has assets worth $7 billion under its management across the globe, has committed to India for a minimum 12 years and is willing to increase the corpus from $100 million if there are good investments.
Wexford manages four hedge funds with $4 billion in assets under management. It also manages a series of PE funds and has invested over $3 billion in private equity, focusing mainly on energy and natural resources, transportation and life sciences companies.
It has been active in the Indian stock markets through the hedge funds, but this is the first time it is getting into the private equity area.
Baseline has already identified 4-5 potential investments in the power, real estate and life sciences sectors in India. Interestingly most of these are in Hyderabad, Endelman added.
As against a potential for close to $500 billion, India has attracted only $10 billion in private equity in 2007. “Therefore, we see a lot of PE firms coming into the country given the hectic project activity planned,” said Endelman.
Wexford Capital’s portfolio includes stakes in companies like Rhino Energy, regional carriers Republic Airwas, medical devices maker Nephros and dry bulk shipping concern Cavan Maritime.
Baseline, managed by a team of US and Indian professionals who have executed in excess of 120 advisory and capital raising transactions, will be based out of Hyderabad.
According to Ramesh Babu Byrapaneni, one of the Baseline partners, though Wexford Capital is providing the entire capital for the fund, the five Baseline partners would pick up to 10% of the future private equity deals along with Wexford.
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