India-based Rabo Equity Advisors’ $200 million India Agribusiness Fund II has made its second investment, a minority stake in agrochemical company Parijat Industries, according to a Rabobank spokeswoman.
The value of the investment was not disclosed, but local media has reported it to be around 1 billion rupees ($14.9 million; €13.2 million).
Investors in the fund include development finance institutions FMO and Denmark’s IFU, which invested $10 million each, and the UK equivalent CDC, which invested $30 million in 2014. The Asian Development Bank is also thought to be an investor.
Rajesh Srivastava, chairman at Rabo Equity Advisors in Mumbai, previously told Agri Investor the fund was expecting further investments from DFIs.
Earlier this month, the fund made a minority stake investment of around $15 million into condiments and snacks company Cremica Food Industries.
Srivasta previously told Agri Investor that Fund II would target food and agri companies seeking growth capital, and would have a term of 10 years compared with its $120 million Fund I’s eight-year term.
“It was a lesson learnt from Fund I that food and agri needs more time – not to deploy, but to mature companies and ride the cycle,” said Srivastava. “Agri infrastructure deals, such as in cold storage and logistics, naturally need longer to develop, for example, so it’s good to have the flexibility.”
He said the size of the deals would also be bigger than for Fund I, most likely ranging from $15 million to $30 million, so that the fund can maintain large stakes in a growing sector, Srivastava said.
Investors in Fund I, which also targeted food and agribusiness companies, included the International Finance Corporation; FMO; Germany’s DEG development finance institution; CDC; Capvent, a private equity house and RWB, a German fund of funds.