Frontline Strategy Launches USD 200 mn PE Fund for Indian SMEs

Mumbai, Maharashtra, India

-- India Industrial Growth Fund to invest in small and medium businesses.

-- Each investment likely to be in the USD 10-12 million range.

-- "Global investors confident of India SME opportunity": Atim Kabra, Founder Partner and Principal, Frontline Strategy.

Mauritius-based Frontline Strategy Ltd today announced the launch of its USD 200 million India Industrial Growth Fund (IIGF). The fund will make private equity investment s in India's small and medium enterprises, with each investment likely to be in the USD 10-12 million range over the life-cycle of the investment. The Fabiani Family Investment Office is the anchor investor in the fund.

IIGF's broad target investments would be companies that are in the early stages of the PE investment space, primarily in the industrial space and with revenues between INR 200 million and
INR 1 billion.

A soft closure of USD 33 million has already been achieved, and the fund plans to invest shortly in a few identified opportunities.

IIGF is Frontline Strategy's second private equity fund, the first being Strategic Venture Fund (Mauritius) Limited (SVF), with total capital returns at over USD 85 million.

Comment by Harish Fabiani, Venture Partner, Frontline Strategy, and Co-Founder, Fabiani Family Investment Office

"IIGF fulfils the long-awaited need of India's SMEs for access to quality global investment funds," said Harish Fabiani, Venture Partner, Frontline Strategy, and Co-Founder, Fabiani Family Investment Office. "The team at Frontline Strategy have not only been brilliant in spotting India's ground level SME opportunities, but also helped investee companies with critical strategic and business inputs to excel in the global marketplace," said Mr Fabiani.

Comment by Atim Kabra, Founder Partner and Principal, Frontline Strategy

"The launch of the India Industrial Growth Fund is founded on the success of the Strategic Venture Fund, our first private equity fund. We are delighted with the response of global investors to India's SME proposition," said Atim Kabra, Founder Partner and Principal, Frontline Strategy. "We are confident that, with the right and timely infusion of capital and strategic advice, Indian SMEs with good management and compelling business models could be fast-forwarded on the growth track," said Mr Kabra.

About Fabiani Family Investment Office:

Frontline Strategy's partner, the Fabiani Family Investment Office, is the anchor investor in the Strategic Venture Fund. Through different investment vehicles, the Fabiani Family has invested over USD 750 million in India. Notable direct private equity investments include Edelweiss Capital Ltd; Indiabulls Financial Services Ltd; Nimbus Communications Ltd; TV18 India Ltd; and Avendus Advisors. Founders Kamal Fabiani and Harish Fabiani will be part of IIGF's Investment Committee .

About Frontline Strategy:

Founded in 2000, Frontline Strategy Ltd (www.frontlinestrategy.com) is an asset management company with primary focus on private equity investment and strategic advice for India-based or India-centric growth stocks. The fund's key investment team includes Atim Kabra, Supratim Basu, Sanjay Bhattacharya, and J Venkatadas, with a collective experience of over 100 years in public and private equity, banking, and company operations.

Prominent investments of Frontline Strategy's first fund vehicle, Strategic Venture Fund (Mauritius) Ltd, include: Astra Microwave Products Ltd, a manufacturer of high-end microwave & RF based components for defence, space and civil telecom apps; Titagarh Wagons Ltd, India's leading private manufacturer of railway wagons; CbaySystems, Inc, the third largest healthcare BPO service provider in the US and India's largest; Alfa Transformers Ltd, a manufacturer of power, distribution and furnace (specialty) transformers; and Shilpa Medicare Ltd, among India's leading specialty pharmaceutical manufacturers primarily focusing on custom synthesis and oncology APIs.

Source: Frontline Strategy Ltd (Business Wire India)

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