CapAleph Advisors plans to raise Rs 675 crore to back entrepreneurs

CapAleph Advisors, Founded by former India Value Fund (IVFA) partner George Thomas, is planning to raise a $100-million or Rs 675-crore debt fund to back food and agriculture entrepreneurs. The debt fund, which is now much larger as compared to what CapAleph was targeting, is looking to raise capital from offshore investors or limited partners (LPs), Thomas said.

The firm has also made a first close at Rs 78 crore for its debut private equity fund, CapAleph Indian Millennium SME Fund, raising money from domestic investors.

The private equity fund is targeting a final close at Rs 100-125 crore in the next one year, the persons cited earlier said. The Meeran family, the promoters of spice maker Eastern Condiments and the anchor investor in the fund, has committed Rs 30 crore towards the fund.

“The capital has come from only four large family offices. The idea behind this fund is to establish a brand around larger opportunity in the agricultural space,” said Thomas.

The Bengaluru-based investment firm is planning to utilise the equity fund across six deals. It is currently evaluating one company in the potato seeds space, and another in the poultry space, the persons cited earlier said.

Other firms actively investing in the food agriculture space include SEAF India, Omnivore Capital, Rabo Equity, DSG Consumer Partners and Aspada.

But even as CapAleph moves closer to raising the equity fund, Thomas said he sees a larger opportunity for the company in the debt space after evaluating the market for the past two years.

Source: The Economic Times