True North is one of India''s leading and well-regarded private equity fund managers. The manager of True North Fund I, True North Ventures Private Limited, was established in 1999 with Mr. Vishal Nevatia as chief executive officer and managing partner. Over the years Mr. Nevatia has built a stable, cohesive investment team of 20 seasoned professionals who have worked on the various True North funds that include up to seven investment managers who focus on deal origination and structuring, relationship management and exits, and up to 13 business managers who focus on due diligence of new investment opportunities and operational engagement with portfolio companies. Since 2000, True North has raised more than $1.9 billion through five fund vehicles and co-investment opportunities. It is one of the few private equity fund managers in India with expertise in executing control-oriented, expansion capital transactions in the middle market segment.
| Project Name | True North Fund VI LLP | |||||
| Project Number | 51128-001 | |||||
| Borrower/Company | True North Fund VI LLP |
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| Country | India |
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| Location | Nation-wide | |||||
| Type or Modality of Assistance |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Partnerships Private sector development |
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| Sector / Subsector | Finance / Infrastructure finance and investment funds |
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| Gender Equity and Mainstreaming | No gender elements | |||||
| Responsible ADB Department | Private Sector Operations Department | |||||
| Responsible ADB Division | Private Sector Investment Funds & Special Initiatives Div | |||||
| Responsible ADB Officer | Mahmud, Farshed | |||||
| Project Sponsor(s) | ||||||
| Description | True North is one of India''s leading and well-regarded private equity fund managers. The manager of True North Fund I, True North Ventures Private Limited, was established in 1999 with Mr. Vishal Nevatia as chief executive officer and managing partner. Over the years Mr. Nevatia has built a stable, cohesive investment team of 20 seasoned professionals who have worked on the various True North funds that include up to seven investment managers who focus on deal origination and structuring, relationship management and exits, and up to 13 business managers who focus on due diligence of new investment opportunities and operational engagement with portfolio companies. Since 2000, True North has raised more than $1.9 billion through five fund vehicles and co-investment opportunities. It is one of the few private equity fund managers in India with expertise in executing control-oriented, expansion capital transactions in the middle market segment. | |||||
| Objectives and Scope | True North Fund VI LLP, a targeted $900 million private equity fund to be managed by True North, aims to make up to 10 equity investments of $50-$150 million each. Focus sectors include financial services (non-banking finance companies, microfinance, affordable housing finance), healthcare (services, non-pharmaceutical), and consumer businesses. True North seeks to provide capital to middle market companies in India with significant growth prospects and/or the potential to gain significant market share in their respective industries. These companies typically are established businesses on the verge of entering the next phase of growth. True North will also target high-potential companies at an earlier stage of growth in need of more time to fully mature. | |||||
| Linkage to Country/Regional Strategy | This financing falls under ADBs nonsovereign operations and is aligned with the India country partnership strategy, 2013 - 2017, which calls for investments in financial infrastructure, including investment funds, as a priority area. The investment is also aligned with the Operational Plan for Health 2015-2020, which supports private sector approaches to address quality, efficiency, and financing issues in the health sector. |
| Safeguard Categories | |
|---|---|
| Environment | FI |
| Involuntary Resettlement | FI |
| Indigenous Peoples | FI |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The Fund''s investments will cover various sectors (including financial services, healthcare, and consumer) across India. At the project processing stage, no specific location and type or nature of business/sectors are identified. The Fund will adopt an environment and social management system commensurate with the level of potential risks of its investments. This will include screening procedures for categorizing projects based on ADB Safeguards Policy Statement (2009) requirements to exclude investments having significant impacts on environment. ADB will retain the right to _opt out_ i.e. not to provide funding for any Category A project on environment supported by the Fund. |
| Involuntary Resettlement | The Fund will adopt an environment and social management system commensurate with the level of potential risks of its investments. This will include screening procedures for categorizing projects based on ADB Safeguards Policy Statement (2009) requirements to exclude investments having significant impacts on involuntary resettlement. |
| Indigenous Peoples | The Fund will adopt an environment and social management system commensurate with the level of potential risks of its investments. This will include screening procedures for categorizing projects based on ADB Safeguards Policy Statement (2009) requirements to exclude investments having significant impacts on indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation | The Fund will encourage portfolio companies to assess social impacts of its operations. |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | 11 Apr 2017 |
| Credit Committee Meeting | 06 Oct 2017 |
| Approval | 18 Dec 2017 |
| Last PDS Update | 12 Jun 2019 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| True North Fund VI LLP: Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2017 |
| Equity Investment in True North Fund VI LLP: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Oct 2017 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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ADB Invests $50 Million in True North's Fund VI to Support Mid-market Businesses in India
ADB has signed an equity investment of up to $50 million with True North VI LLP to provide equity capital to middle-market companies in India embarking on their next phase of growth.