Project Name BTS INDIA PRIVATE EQUITY FUND
Project Number 39922-014
Borrower / Company BTS INDIA PRIVATE EQUITY FUND
Country / Economy India
Location
Type or Modality of Assistance
7223 Equity Ordinary capital resources USD 15.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Capital Markets and Financial Sectors Division
Responsible ADB Officer Brett, S. Jane
Project Sponsor(s)
Description BTS India Private Equity Fund (the Fund) was launched on June 2006. It provided expansion financing to small and medium-sized enterprises (SMEs) in India.
Objectives and Scope The primary objective of the Fund is to catalyze foreign and domestic investment into long-term equity finance for Indian SMEs. There exists a gap in the long-term equity finance for SMEs in India because foreign direct investment is targeted directly at local subsidiaries of multinational corporations, while other equity investors focuse on short-term investments in publicly listed companies. ADB serves a catalytic role in attracting long term investment to India by this intervention.
Status of Development Objectives The Fund intends to (i) mobilize long-term capital in the form of private equity for SMEs in India to finance expansion and productivity improvement; (ii) diversify the sources of finance available for SMEs; (iii) provide management advice to SMEs; (iv) create sustainable employment in India through the Fund's investee companies; (v) stimulate private sector development to serve as vehicle for the country's long-term economic growth and stability; and (vi) contribute to the development of a well functioning regulatory and legal environment in India.
Linkage to Country/Regional Strategy ADB's country strategy and program (CSP) 20032006 for India states that the private sector has a leading role to play in achieving growth targets. ADB's strategy focuses on promoting an enabling environment for private sector development through (i) financial sector interventions to improve financial intermediation and resource mobilization; (ii) policy reforms to remove impediments to private investment, both domestic and foreign; (iii) investment in public infrastructure, which would also facilitate private investment; (iv) public-private partnerships; and (v) investments in private sector projects. ADB's investment in this project will directly contribute to resource mobilization and improved financial intermediation and investment in private sector projects.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Fund's investee companies complies with national environmental laws, regulations, and ADB's environmental and social safeguard policies; or agree to adopt a program to comply with such standards.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 02 Aug 2005
Credit Committee Meeting 25 Oct 2005
Approval 23 Nov 2005
PDS Creation Date 01 Sep 2006
Last PDS Update 24 Sep 2014
 
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