European Investment Bank (EIB) Global will invest up to $40 million in the private equity fund Amicus Capital Partners Fund II, to support investments in Indian small and medium-sized enterprises (SMEs) operating in various economic sectors.
EIB Global said in a statement on Tuesday that the fund seeks to leverage digitalization and technology to overcome geographic limitations and facilitate deeper market penetration.
The fund does this by prioritizing investments in digital-first business models, working with companies to strengthen their existing technology infrastructure, and helping management design clear digitalization roadmaps to boost digital transformation in conventional businesses.
The fund’s strategy of using digitalization to support market access across a range of economic sectors is well aligned with the objectives of the Global Gateway initiative.
It is noted that European Union (EU)’s Global Gateway supports sound projects that improve global and regional connectivity, and works with partner countries to address the digital divide and further integrate into the global digital ecosystem.
Amicus Capital Partners Fund II will also help local businesses expand, providing goods and services to underserved regions and populations and fostering sustainable, inclusive growth.
“I’m delighted to announce this EIB support for Amicus Capital Partners Fund II, a fund that pursues a targeted investment strategy combining digitalization and market access to foster inclusive economic growth across various sectors in India, in alignment with the strategic EU priorities in India,
“In a challenging fundraising environment, this investment promises high additionality, and will promote crowding-in and the diversification of the investor base,” said EIB Vice-President Kris Peeters.
Mahesh Parasuraman, Partner and Co-founder of Amicus Capital, added that the firm is excited to bring the EIB on board as a key investor in the fund.
“This represents a significant milestone in our journey. The EIB’s participation will further catalyze private capital into Amicus Capital Partners II,
“The fund will leverage on the global investment experience of the EIB team to help Amicus Capital support middle-market companies in India in their digitalization and market access efforts,” he added.
The EIB is the long-term lending institution of the European Union, owned by the Member States. It makes long-term finance available for sound investment to pursue EU policy goals.
The EIB is the largest multilateral public bank in the world. In 2022, it financed around €10.8 billion ($11.82 billion) in investments outside the EU via EIB Global, the arm of the bank created that same year for activities beyond Europe.
Since it began operations in India in 1993, the EIB has supported 26 projects and invested close to €5 billion ($5.47 billion) in transport, energy, agriculture, fisheries and forestry, as well as in the country’s SMEs.
EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.
Alongside its partners, fellow EU institutions and Member States, the EIB aims to support investment of €100 billion ($109.45 billion) (around a third of the initiative’s target) by the end of 2027, including in India and Asia.
Amicus Capital is an India-dedicated early growth capital fund managed by experienced private equity professionals, Sunil Theckath Vasudevan and Mahesh Parasuraman.
It currently has assets under management of $246 million across two funds.
Amicus Capital is focused on sectors where the investment team has extensive experience and networks: financial services, consumer, healthcare, technology and business services, and specialty manufacturing.
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