52252-001: Multiples Private Equity Fund III Limited | Asian Development Bank

India: Multiples Private Equity Fund III Limited

Nonsovereign (Private) Project | 52252-001 Status: Approved

An equity investment of up to $35 million in Multiples Private Equity Fund III (_Multiples III_), a targeted $750 million India-focused private equity fund ($850 million hard cap) focused on investing in growth stage opportunities in middle-market companies operating in the consumer, financial services, healthcare, and technology sectors.

Project Details

Project Officer
Mahmud, Farshed Private Sector Operations Department Request for information
Country
  • India
Sector
  • Finance
 
Project Name Multiples Private Equity Fund III Limited
Project Number 52252-001
Borrower/Company Multiples Private Equity Fund III Limited
Country India
Location
Type or Modality of Assistance
7575 Equity Ordinary capital resources USD 35.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender Equity and Mainstreaming Some 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 An equity investment of up to $35 million in Multiples Private Equity Fund III (_Multiples III_), a targeted $750 million India-focused private equity fund ($850 million hard cap) focused on investing in growth stage opportunities in middle-market companies operating in the consumer, financial services, healthcare, and technology sectors.
Objectives and Scope The fund proposes to invest in growth stage opportunities in middle-market companies (with enterprise values ranging from $150 million to $500 million) in India. It may also selectively consider control-oriented and early-stage investment opportunities. Target sectors are consumer, finance, health care and pharmaceuticals, and technology.
Linkage to Country/Regional Strategy

The investment in the fund is consistent with the country partnership strategy, 2018-2022 for India; it (i) highlights the need for recapitalization of the banking subsector to resolve its stressed assets; (ii) includes support for affordable housing, financial inclusion and the health sectors as strategic priorities; and (iii) focusses on the importance of gender equality.

The ADB Operational Plan for Health, 2015 2020 strongly supports private sector approaches to address quality, efficiency, and financing issues in the health sector. Furthermore, the ADB Financial Sector Operational Plan 2011 and its subsequent review in 2017 recommend retaining the focus on finance sector development through investments in banks and non-bank financial institutions and promoting inclusive finance by supporting the housing finance sector. By investing in the fund, ADB is partnering with a leading fund manager that has identified health care and finance as two of its core sectors.

Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects The potential environment and social impacts and risks associated with the fund's existing and/or likely future portfolio, its existing Environmental and Social Management System (ESMS) and its commitment and capacity for implementing the ESMS, have been assessed as per ADB's Safeguard Policy Statement 2009 (SPS 2009). Multiples will adopt an enhanced Environmental, Social and Governance (ESG) Framework which screens and categorizes investment against ADB's Prohibited Investment Activities List; applies environmental and social requirements to portfolio companies as per its ESG Framework; builds capacity tailored to the needs of the fund; includes a grievance redress mechanism; reports annually or as required to ADB on environmental and social performance.
Involuntary Resettlement In compliance with ADB's SPS 2009, the project is proposed classified as Category FI for involuntary resettlement. The business activities undertaken by MPEF investees are not expected to involve land acquisition that would cause physical or economic displacement impacts.
Indigenous Peoples In compliance with ADB's SPS 2009, the project is proposed classified as Category FI for Indigenous Peoples. MPEF III investments are not expected to cause significant impact on Indigenous Peoples.
Stakeholder Communication, Participation, and Consultation The private commercial nature of investments limits the opportunities for stakeholder engagement. Conduct of consultation in relation to investees business activities, if required, will be carried out in accordance with applicable national laws and regulations and the Safeguard Policy Statement of the Asian Development Bank.
Timetable for assistance design, processing and implementation
Concept Clearance 03 Oct 2018
Credit Committee Meeting 08 Nov 2018
Approval 13 Dec 2018
Last PDS Update 09 Jan 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 Public Communications Policy (PCP) 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.

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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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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