Carlyle India Advisors Pvt. Ltd, the Indian subsidiary of the global private equity firm the Carlyle Group, has invested USD 27.7 million (Rs. 110 crore) in Chennai-based Repco Home Finance Limited.

The investment will come from Carlyle Asia Growth Partners III, a 680 mln USD fund that invests in high growth companies in India, China, Japan and Korea, an official release said.

The funds raised would be used by Repco to expand its loan portfolio.
 
Repco, a subsidiary of Repatriates Co-operative Finance & Development Bank Ltd, has been in the housing finance market since 2000. The company provides loans to its customers for construction and purchase of residential plots and houses, repairs and renovations of existing houses, and other construction and commercial loans.

The company has a network of 26 branches across Tamil Nadu, Andhra Pradesh, Karnataka and Pondicherry and is looking to aggressively expand its branch network and loan portfolio. Its outstanding loan book is about Rs 650 crore.

This is Carlyle group’s second investment in the housing finance sector in India. Last year, the company invested $650 million in Housing Development Finance Corporation (HDFC) for a 5.6% stake.