Faering Capital

Funds managed

Fund nameAsset ClassLicense
Faering Capital Evolving FundGrowth StageSEBI AIF Cat 2
Faering Capital Evolving Fund IIPrivate Equity/ Growth StageSEBI AIF Cat 2

About the AMC

  • Faering Capital was founded in 2009 as a private equity & venture capital firm. It manages Rs. 2,100 crores (approx. $350 mn) of capital across two funds.
  • It has made 23 investments and 3 exits so far.
  • It seeks to invest in companies operating in the financial services, consumer & retail, healthcare, education, media, technology, internet and business services sectors.

Key staff

  • Aditya Parekh (Co-founder & Managing Director)- He has 18 years of experience in the global and Indian private equity & investment banking space. Before Faering, he was a vice president of a private equity fund named Old Lane India Opportunities Fund where he led investments in the Indian real estate sector and evaluated investment opportunities across the infrastructure and financial sectors. He has also worked with Merrill Lynch for five years. He holds an MBA from the Wharton School, University of Pennsylvania and a bachelor’s degree in economics from Cambridge University.
  • Sameer Shroff (Co-founder & Managing Director)- He has over 20 years of global and Indian experience in private equity, asset management and strategy consulting. He served as a director at Indiareit Fund Advisors, an Indian real estate-focused private equity fund. He was also a strategy consultant at Booz & Co. in London. He began his career at Morgan Stanley in New York, where he worked for over six years. He holds an MBA from the Kellogg School of Management, Northwestern University.

Investment Philosophy (for firm)

Strategy

  • Sharp sector focus – The firm has built a strong network of experts & teams to work on each one of the sectors they cater to. The sectors they specifically function in include, financial services, consumer and retail, healthcare and business services.
  • Long-term approach – They believe in building long-term relationships with the entrepreneurs and portfolio companies they work with.
  • Catalyst for market leadership – They believe in adding value through aspects such as, strategy, operations, governance, network enhancement, recruiting & fundraising for an impactful engagement with their portfolio companies.

Media

Title: CDC group on Fund III, Source: CDC Group website, Date: 2017

CDC talks about its investment of $25 mn in Faering. It also gives out information of where the capital is used; a list of portfolio companies is given. Few details about the fund are also provided.

Title: Fund’s portfolio and holdings, Source: Trendlyne.com

https://trendlyne.com/portfolio/superstar-shareholders/custom/?query=faering%20capital%20india%20evolving%20fund

Title: Fund I closed in 2010, Source: Moneylife, Date: 01 February 2011

https://www.moneylife.in/article/faering-capital-closes-maiden-private-equity-fund/13584.html

Title: Series B funding to WheelsEMI, Source: Livemint, Date: 10 December 2018

https://www.livemint.com/Companies/6aTE4tIIA0RT9SVOlhYQeJ/WheelsEMI-gets-100-crore-infusion-led-by-Faering-Cap.html

It made Series B funding with Rs 100 crores to WheelsEMI from Fund II. It is the fourth investment it made from this fund. WheelEMI plans to expand its business by opening new branches in several cities. It also talks about Fund II being closed with a corpus of $200 million.

Title: Fund III, Source: Business Standard, Date: 12 February 2018

https://www.business-standard.com/article/companies/faering-capital-to-launch-its-new-250-million-fund-in-india-118021200168_1.html

It will focus on providing growth capital to mid-market companies. The fund is “based in Mauritius and pooling into the Indian AIF”. In this fund, International Finance Corporation (IFC), part of the World Bank group, had proposed an equity investment of up to $15 million. IFC also states some of the challenges the PE companies in India face.

Analyst questions

  • According to CDC Group’s website, there is a Fund III of your firm that they have invested in for $25 mn and the fund is domiciled in Mauritius, can you tell us more about the fund? Also, why’s there nothing on your website about it?
  • Tell us briefly about your investment philosophy.
  • According to you, what is it that PE firms need to focus on when they make investments only in certain sectors?
  • What made you choose 4-5 sectors particularly, what was the thought that went into it? 
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