Private equity firm, Banyan tree has said that it will be starting a $100 million fund. Banyan makes structured PE investment in small and mid- sized businesses.

Name of the fund is going to be Banyan Tree Growth Capital and is going to be the first India focused fund from Banyan.

It is going to be anchored by two Dutch and German financial institutions- FMO and DEG. FMO is from Netherlands and the other is a German company.

Meanwhile, one must remember that BanyanTree Finance is an advisor-based fund that is operating from Mumbai and has a six member team. It advises on various sectors in India while its primary focus is the manufacturing and industrial businesses.

The fund has been in operation for last 18 months and has already got involved with five deals. Most recent of its deals was the $15 million Deepak Fasteners Limited (DFL). DFL is into the business of industrial fasteners. The total stake is not known.

The step taken by Banyan is in line with the current trend that has appeared in the PE sector. More than 20 PE firms in India are looking forward at ways to raise funds.