Carlyle to invest substantial part of CAGP IV fund in India

Carlyle to invest substantial part of CAGP IV fund in IndiaThe world's largest private equity (PE) investment firm, Carlyle Group, has said that it will spend a substantial amount raised from fourth Asian growth capital fund, in Indian and Chinese companies.

The fund, Carlyle Asia Growth Partners IV (CAGP IV), managed to raise $1.04 billion in only 14 months, despite unfavorable conditions of the financial market. Investors from all corners of globe have shown interest in the fund, and the firm would now lay special focus on domestic consumption and outsourcing.

Shankar Narayanan, the Managing Director of the firm, said: "We will look at a 20-35% stake. We generally invest in unlisted companies and will target those that are growing at 40-50% on a compounded basis." He said that the firm raised $129 million, $164 million and $680 million under three consecutive funds.

Earlier last year, Actis had invested $1 billion, out of total raised amount of $2.9 billion, in Indian companies. Carlyle, with total of about $650 million investment in India, invested around $650 million in HDFC through another fund.

Mr Narayanan further said: "We see a significant increase in government pension funds and major financial institutional groups in the fourth fund, showing their recognition of our attractive risk-adjusted returns and no-leverage investment strategy."

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