Investcorp Targets Up to Three Deals Annually to Expand India Portfolio

Alternative asset manager Investcorp, backed by its largest shareholder Mubadala Investment Company, remains highly optimistic about India's economic potential and plans to increase its deal-making activity in the country. Gaurav Sharma, the head of India investment business at Investcorp, stated that the firm aims to complete two to three transactions annually, with each investment ranging between $50 million and $75 million.

While Mr. Sharma did not provide a specific total investment figure for the upcoming five-year period, he emphasized that the ideal scenario involves maintaining a steady pace of two to three deals per year, depending on finding the right opportunities. Target sectors for these investments include business services, healthcare and pharma, technology, consumer, and industrials and manufacturing.

Over the past few years, the firm has deployed $1 billion in India's mid-market private equity space, backing healthcare companies such as NephroPlus and Global Dental Services, e-commerce firm FreshToHome, and technology ventures like Unilog and NuSummit. Recently, the company acquired 20Cube 3PL Solutions, a digital contract logistics platform, for approximately $53 million.

Investcorp typically evaluates more than 150 companies annually before selecting a few, purchasing minority stakes between 10 and 40 percent or acquiring majority stakes. The current deployment is funded through an India-focused $500 million fund backed by global institutional investors, Gulf-based investors, private wealth franchises, Indian investors, life insurance companies, banks, and family offices.

Highlighting India's robust macroeconomic fundamentals, Mr. Sharma noted that the portfolio's top-line continues to grow between 20 and 40 percent. With strong growth projections from the International Monetary Fund and increasing bilateral economic ties following the Comprehensive Economic Partnership Agreement signed in 2022, Investcorp remains firmly committed to expanding its footprint in the South Asian nation.