Indian impact investment and venture capital fund Lok Capital has held a first close of $40.5 million on its third fund.
Lok Capital III is targeting $100 million and expects to hold a final close in the next 12-18 months. It will target growth investments in healthcare, financial services and agriculture, with about $2-10 million per transaction.
It said the agriculture sector had opened up significant opportunities for impact investments, including dairy, supply chain management and farm-to-fork models.
Its current sole agriculture investment is an end-to-end potato supply chain management company, Siddhivinayak Agri Processing, but the firm said Fund III was expected to back more agri and dairy companies.
Other portfolio companies include financial services firms Ujjivan and Equitas Holdings, and education company QED.
Its predecessor funds, Lok Capital I and II have a combined value of about $90 million and are both fully deployed, the firm said. Its Fund I has generated an internal rate of return of 15 percent and returned capital to all of its investors. Fund II has current gross returns of 28 percent, with two portfolio companies Equitas and Ujjivan going public this year.
Known investors in Lok Capital’s funds include the CDC Group, Netherlands Development Finance Company (FMO), Société de Promotion et de Participation pour la Coopération Economique (Proparco), and the TIAA Global Asset Management.
New Delhi-based Lok Capital was founded in 2002 and has about $125 million of assets.