Swiss Tec VCF To Set Up $50 M India Fund

Mumbai | Updated: Jul 28 2004, 04:36am hrs
The Swiss Technology Venture Capital Fund (Swiss Tec VCF), the private equity fund sponsored by the State Secretariat for Economic Affairs (SECO) of the Swiss government is raising its second India focused fund, the corpus of which is $50 million.

Confirming this, BTS Investment Advisors Private Ltd, president and CEO, PD Shedde stated that there is a second India fund being put in place and the fund raising process was initiated early this month. He added that the Swiss government through SECO has in principle stated that they would be investing $10 million in it. The rest, he stated, would be through institutions and private investors.

Seco had selected BTS Investment Advisors Ltd (BTS-IA), based in Switzerland and part of BTS Belvoir Trust AG as its exclusive advisor for investment opportunities in India. BTS has promoted a wholly owned subsidiary BTS Investment Advisors Private Limited for providing advice to Swiss Tec VCF for investment opportunities in India. BTS-IA launched its India operations in 2001. The focus of the second fund will be in IT/ITES sectors, pharma, auto ancilliary, retail and value added services, emerging sectors like biotech.

The corpus of the earlier fund was around $22 million of which 80 per cent has been exhausted. The fund has invested in 17 companies and has so far exited three of them.

The fund plans on exiting three more by the end of this year.

The focus of the first fund was primarily on companies in the small and medium sized segment and the second one is expected to be more on medium to large enterprises.

The fund does not rule out the possibility of participation in larger companies along with a syndicate of other funds.