Everstone Capital Raises $350 Mn Fund

Everstone Capital, the private equity arm of Future Group plans to raise $350 Mn for a new fund to invest in warehouses in India.

Everstone manages $1.5 bn across various funds. It wants to raise another fund to invest in developing industrial real estate and warehousing facilities as India’s government changes the current regional tax structure, which has led to delays in the movement of products, in favor of a goods and services tax regime.

With the country moving from regional and state levies to a central goods and services tax, the need for regional warehouses in every state will be greatly reduced and companies will move to large central warehouses and distribution centers.

Transaction Reference: Bloomberg

Everstone Capital is the PE arm of Future Capital Holdings. In Dec 2009, Kishore Biyani spun off its PE business as Everstone Capital and the non investing business as Future Capital Holdings in a restructuring exercise.

In January 2010, Everstone raised Indivision India Partners II fund with the corpus of $ 550 Mn. Everstone already invested 25% out of its $ 240 Mn Indospace Logistics Parks Fund, a Logistics fund. Indospace, which develops industrial real estate and warehouses across India, is a joint venture between Everstone and U.S.-based industrial real estate firm Realterm Global.

According to the sources, the firm, which also manages the $350 million Horizon Realty LLC, may raise another real-estate fund next year depending on market conditions.

Everstone, with offices in Mauritius, Singapore, Mumbai, Delhi and Bangalore, may list its real-estate assets in the 3 billion rupee Kshitij fund on Indian exchanges and It may also explore listing the Horizon fund on the Singapore exchange.

Recently in July, Aditya Parekh-son of HDFC chairman Deepak Parekh, raised $ 750 Mn for Faering Capital fund, which plans to invests in mid-cap firms, with an average deal size of Rs30-80 Cr.

According to Emerging Markets Private Equity Association, Indian funds raised $1.3 bn in the first six months of 2010, compared with $4 bn in the same period last year.

Private-equity firms raised $41 billion in the second quarter, the lowest amount since 2003, as endowments, pensions and wealthy individuals hesitated to back new funds, according to London-based research firm Preqin.

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