BENGALURU: Riyadh-based investment management firm and limited liability partner Hades Financial Private Capital Group on Monday announced a $28 million investment in two Indian investment companies, while it plans to invest $500 million in India by 2027, a top executive said.
The move signals Hades Financial’s increasing focus on India as an emerging market, as it expects increased investment opportunities on the back of a fast-growing economy and inflow of foreign capital.
Currently, India accounts for 15-18% of the firm’s global assets under management (AUM), and the firm plans to increase that percentage over time. To date, the firm manages over $4.6 billion in assets globally and is backed by some of the world’s largest sovereign wealth funds.
The global investment manager, founded in 2011, is also looking at making significant investments in Indian deep tech and software-as-a-service (SaaS) companies, said Vasu Chaturvedi, investment director at Hades Financial. mint.
“We are very optimistic about India’s growth story. One of the biggest advancements I have seen is improved infrastructure and strong economic growth leading to the emergence of innovative companies, especially in the deep tech space,” Chaturvedi said.
Sector-agnostic Hades invests directly in companies and indirectly through fund managers. The Saudi Arabia-based firm is also looking at investing in SaaS through investments in fund managers focused on the sector, as well as private equity firms focused on expanding institutional exposure in infrastructure and automotive, Chaturvedi added.
Financial ventures
The $28 million capital infusion is part of Hades Financial’s larger goal to capitalize on new opportunities in the Indian market. Since 2016, Hades Financial has pumped more than $150 million into the region across various sectors such as healthcare and financial services.
Hades Financial has invested in Somerset Indus Capital Partners, a healthcare-focused private equity firm that has backed nearly 14 companies, including Apex Hospitals and Emil Pharmaceuticals, and Cedar IBSi, a strategic consulting and research firm focused on the financial services sector.
Chaturvedi said Somerset has been successful in identifying areas in the country that lack strong healthcare infrastructure, especially in tier 2 and tier 3 cities, helping Hades Financial pick long-term investment locations.Similarly, Cedar is helping the company make deeper inroads into India’s banking industry.
Underserved Sectors
India’s deep tech sector has been underserved over the past five years, with many global investors continuing to focus on sectors such as fintech, food and consumer where bigger storylines are unfolding.
“Deep tech may not be in the sights of many investors as it is a space that requires more strategic focus. Currently, only 10-15 per cent limited partners are looking closely at this space,” Chaturvedi noted.
Hades Financial is looking to leverage deep technology and work on small-scale innovation in sectors like banking, healthcare and hardware, and sees big potential in companies that have been incubating for five or six years, according to Chaturvedi.
Chaturvedi said that in the global market, incumbents tend to soak up most of the available capital, making it difficult for startups to raise funds, but investors are now taking notice and are actively looking at underserved sectors, he added.
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