World Bank’s arm IFC is set to invest INR 296 Crore/$40 Million in Baring Private Equity Asia’s India-focused credit platform. The fund will invest in senior debt instruments of companies primarily, that have substantial operations in the country, or are based out of India.
Baring Private Equity Asia aims to raise $500 million for the fund, which will be capped at 20%. The primary utilisation of this investment will be on mid-market companies and increasing their access to credit, especially in low-income states of the country.
Baring Private Equity Asia India Credit was set up under parent company in 2016 to look into the ever-expanding debt market, in addition to mid-sized and large Indian companies. Baring Private Equity Asia has 230,000 employees, 39 portfolio companies, with sales of about $32 billion. IFC has an active Limited Partner (LP) portfolio in India, which makes direct private equity-style investments and also lends to companies.