US private equity fund (PE) Carlyle Group plans to expand its presence in India and is looking at innovative ways to deepen its India focus, Edward Mathias, Managing Director and a board member of the group, said.
As part of this plan, the PE investor would set up a non-banking finance company (NBFC) lend to Indian corporates. The PE fund also plans to raise a fund in India in order to invest across sectors, including retail, defence and insurance.
M Shankar Narayanan, Managing Director, Carlyle India Advisors said a local fund would help the firm get exposure in certain high-growth sectors like insurance and retail that caps foreign investment in a company.
Industry watchers feel that the fund-raising environment is fairly challenging domestically, but given Carlyle’s pedigree and contacts, it should be able to raise money anywhere,anytime.
Carlyle’s plan to set up an NBFC is similar to Kohlberg Kravis Roberts (KKR)’s strategy in India. KKR has lent more than Rs 4,500 crore in various structured finance deals to Indian companies. Significantly, KKR also plans to float a local fund.