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World Bank’s IFC to invest in Baring Private Equity Asia’s third India credit fund

By Samantha Machado

  • 03 May 2021
World Bank’s IFC to invest in Baring Private Equity Asia’s third India credit fund
Credit: 123RF.com

World Bank’s International Finance Corporation (IFC) said on Monday it will invest up to $40 million (Rs 296 crore) in the third fund of Baring Private Equity Asia’s India-focused credit platform. 

The investment will be capped at 20% of the $500 million that Baring Private Equity Asia aims to raise for the fund, IFC said in a disclosure.  

The World Bank arm said that the fund will invest primarily in senior debt instruments of companies that are either based in India or have substantial operations in the country.  

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The focus will be on increasing access to credit for mid-market companies in India, especially low-income states, IFC said.  

In January 2020, VCCircle reported that the India-focused credit platform of Baring Private Equity Asia is about to hit the road to raise its third fund.

In December 2020, people told The Economic Times that a large North American pension fund has become the fund’s anchor.

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Baring Private Equity Asia India Credit was set up under parent company Baring Private Equity Asia in 2016 to explore the growing debt market among large and mid-sized Indian companies. 

Baring Private Equity Asia has 39 portfolio companies across Asia, with a total of more than 230,000 employees and sales of about $32 billion.

IFC, which has an active LP (limited partner) portfolio in India, also makes direct private equity-style investments and lends to companies in the country.  

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It said last week it would invest $25 million in the fourth fund of Jungle Ventures, an early-stage venture firm focused on Southeast Asia.  

Separately, edtech platform focused on higher education upGrad was in advanced talks with IFC to raise $40 million at a valuation of $850 million. 

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