21 March 2023
Promoter – Financial Intermediary
AMICUS CAPITAL MANAGERS
Equity participation in Amicus Capital Partners India Fund II (the "Fund"), a generalist, closed-ended private equity fund targeting predominantly investments in Indian small and medium-sized private companies, managed by Amicus India Capital Partners (the "Fund Manager").
Additionality and Impact
Through this operation, the EIB will be able to support the growth and institutionalisation of an independent emerging fund manager investing in India. The EIB will provide much needed equity risk capital to local enterprises that operate across various economic sectors. Across emerging markets, access to finance - in particular equity finance - and managerial advice are among the most prevalent barriers for the growth of small and mid-sized companies. The provision of growth capital and managerial support through private equity funds has proven an effective strategy to overcome this market failure. By providing growth capital and managerial advice to local companies, the operation will contribute considerably to boosting enterprise capabilities and competitiveness through access to finance and improved skills.
The Fund's strategy of using digitalisation to support market access across several economic sectors is well aligned with the objectives of the Global Gateway, which is aimed at: "helping partner countries address the digital divide and further integrate into the global digital ecosystem" (https://international-partnerships.ec.europa.eu/policies/global-gateway/digital_en). Furthermore, its aim of supporting the growth and expansion of local enterprises providing goods and services to underserved regions and populations is closely linked to supporting jobs and sustainable and inclusive growth - in line with the ambitions of the EU in India, as indicated in the EU-India Strategic Partnership: A Roadmap to 2025 (15 July 2020) (https://www.eeas.europa.eu/sites/default/files/eu-india_strategic_partnership_a_roadmap_to_2025_0.pdf)
The EIB's commitment is anticipated to support the fund raising and catalyse other investors in a difficult fund raising environment that has been exacerbated by the impact of the Covid-19 pandemic and the war in Ukraine. The EIB is expecting to provide guidance to the fund manager on best market practice for international private equity firms and thus contribute to its institutionalisation and processes, including in relation to impact assessment and implementation of best market practices related to ESG considerations.
The Fund is expected to contribute to several Sustainable Development Goals ("SDGs"), including SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure) and SDG 10 (Reduced Inequalities).
Key project objectives include supporting the creation of jobs, private sector development and digitalisation to support growth across several economic sectors in India, by increasing access to risk capital to local high-growth companies. The Fund aims to invest in a diversified portfolio of companies, supporting the value creation of the underlying investees through a hands-on management approach, as well as enhancing the EIB's Environmental and Social standards.
- Financial and insurance activities
Proposed EIB finance (Approximate amount)
USD 40 million (EUR 37 million)
Total cost (Approximate amount)
USD 200 million (EUR 187 million)
The Fund will operate in line with the EIB's Group Environmental and Social standards.
Signed - 25/10/2023