SBI CAP

Funds managed

Fund nameAsset ClassLicense
Neev FundInfrastructureSEBI AIF Cat 1
SWAMIH Investment Fund IReal EstateSEBI AIF Cat 2
SVL – SME FundSMESEBI AIF Cat 2

Neev Fund is the outcome of a partnership between State Bank of India and UK’s Department for International Development (DFID). Neev fund is an Infrastructure private equity fund focused on creating sustainable development.Neev Fund was conceptualized and launched in 2015 by Hon. Prime Ministers of India (Mr.Narendra Modi) and UK (Mr. David Cameron) to catalyze investment in Indian states which have traditionally not received private investments. The output envisaged from this initiative was creating a model for sustainable development that can provide economic, social and environmental benefits and create jobs in the eight low income states of India. Invested in ten portfolio companies in the target states. Established as a contributory trust in 2014 Neev Fund is a INR 5,040 million fund focused on making investments in 8 of the low income states in India i.e Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Chattisgarh, Jharkhand, Odisha and West Bengal.

https://economictimes.indiatimes.com/markets/stocks/news/sbicap-ventures-achieves-first-closure-of-govts-last-mile-fund-for-stuck-projects/articleshow/72405280.cms

SWAMIH Investment Fund I has been formed on 6th Nov 2019 to complete construction of stalled, brownfield, RERA registered residential developments that are in the affordable housing / mid-income category, are networth positive and requires last mile funding to complete construction. It has a target corpus of INR 12,500cr with a greenshoe option of INR 12,500cr. The Sponsor of the Fund is the Secretary, Department of Economic Affairs, Ministry of Finance, Government of India on behalf of the Government of India.

SBICAP Ventures Ltd. (SVL, The Investment Manager) has launched the SVL-SME Fund with an objective to bridge the equity gap in the small and medium enterprises segment. SVL considers there is a significant opportunity to create value through a well-diversified and high-quality portfolio by making private equity investments in small and mid-size businesses.The Fund will evaluate target Portfolio Entities that (i) are cash flow positive; or (ii) have a short path to positive cashflow; (iii) have high growth prospects; (iv) have the scope for improvement of profitability margins; and (v) intensive orientation towards improving overall Environmental, Social and Corporate Governance (ESG).

About the AMC

  • SBICAP Ventures Ltd. is an alternative asset manager based in India and is a wholly owned subsidiary of SBI Capital Markets Limited, which in turn is a wholly owned subsidiary of SBI, the largest public sector bank in India.

Key staff

  • Manav Bansal (CIO)- Manav has been a private equity investor and investment banker for 20 years in Infrastructure, healthcare and technology.Since 2013, Manav headed India operations for Brightlink Partners, Inc – an investment and advisory firm headed out of Tokyo, Japan and focusing on Indo-Japan investment in India and Asia.From 2014 for two years, Manav was also a Partner at Brescon – a shop specializing in special situation asset advisory.Earlier from 2006, Manav was the founding member of Macquarie’s infrastructure team in India which raised c. US1.2bn fund in partnership with IFC Washington and State Bank of India. Located in and heading the New Delhi office, Manav was the face of Macquarie to the government – leading consultations with line ministries and the Finance Ministry. Subsequently, as Director at SNC Lavalin India Infra fund (a subsidiary of Canada based SNC Lavalin), Manav originated and concluded private equity investment in road assetco and was helping to raise an India focused fund that had soft commitments of over US$ 200mn.Manav has also worked at advisory/corporate finance at PwC and KPMG leading initiatives for corporate advisory, privatization, cross-border M&A, and policy advisory to the governments.He is an MBA with graduate degree in engineering.
  • Akshay Panth (Principal Investment Officer)- Akshay has over 13 years experience in Private Equity, Principal Investments and Advisory roles with leading domestic and international investors. He started his career with the India Infrastructure Fund (a c.US$1Bn Infrastructure Fund managed by IDFC Alternatives) and has since worked with multiple private equity and principal investors. His previous experience includes working with CapAleph Private Equity, GMR Infrastructure, and MAPE Advisory Group. At CapAleph, Akshay handled the Infrastructure Support Services and Education & Skill Development segments for the Fund. At GMR Infrastructure, Akshay was part of the Project Finance team working on the road sector where he submitted multiple bids to the NHAI. He has been part of teams that have invested over US$100Mn in the Indian infrastructure space. Akshay holds a PGDM/MBA from the Indian Institute of Management, Lucknow and a Bachelor of Commerce degree from Bangalore University.

Media

Title: Govt-backed AIF for distressed realty gets Rs 10,530 cr in first closing, Source: Business Standard, Date: 06 December 2019

https://www.business-standard.com/article/economy-policy/govt-backed-aif-for-distressed-realty-gets-rs-10-530-cr-in-first-closing-119120601463_1.html

The fund has attracted interest from investors such as Government of India, SBI, LIC, HDFC Ltd and all major public sector banks.The Government of India, the sponsor of the fund, has committed an infusion of up to Rs 10,000 crore in the special window. Additional investments will be brought in by institutional and private investors to generate a total corpus of Rs 25,000 crore.State Bank of India (SBI) is contributing up to 10 per cent in the first round. Further investments in corpus would depend on the market response and the pace at which the housing projects are being completed

Title: Mr. Manav Bansal, CEO Neev Fund, SBICAP Ventures Ltd., Source: World Water Summit 2018, Source: 08 September 2018

https://www.youtube.com/watch?v=mp_OY-2z0kI

Renewable resources development is done by the new upcoming, young, first generation entrepreneurs. The belief is when portfolio companies are run by young entrepreneurs, the other side providing funding should also be of the mindset to appreciate these new ideas which is still left to happen. Here in India a good idea never goes unfunded, but the problem is, potential of the idea which is in the idea generator’s mind, is mostly not understood by the investors who are pitched to  (this is generally the case with the energy sector). Hence, the fund managers mention, they look forward to improvement taking place.

Analyst questions

  • What is your investment philosophy? How is it different across 3 funds?
  • Funds are in collaboration with the government, how could it have been different if it wouldn’t have been in collaboration?
  • Why private debt fund? Why not equity?
  • How is the debt funding different from a lending by bank and NBFC’s for portfolio companies? What are the pros and cons of it?

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