Sabre Capital to acquire a company each in IT, engineering sectors

Sabre Abraaj Private Equity, the 50:50 JV between Sabre Capital Worldwide and Abraaj Capital, is in the process of acquiring two firms in the IT and engineering products space that would be finalized in the next two months. The firm has declined to name the investee companies. Sabre Abraaj Capital has recently launched the $300 mn Sabre Abraaj India Private Equity Fund I and invested around $16 mn in Hyderabad-based Ramky Infrastructure (See Related Post). The fund is scouting for turnaround opportunities; it is a stated strategy of the fund to first acquire the companies and then work out the strategy to achieve turnaround. The fund is targeting sectors like infrastructure, retail, auto components, leisure and entertainment and medical devices as potential sectors for venture fund investments.

Read the article in The Economic Times.

IL&FS, Sabre Abraaj invest Rs. 125 crores into Ramky Infrastructure

Hyderabad-based Ramky Infrastructure Limited has received private equity funding of Rs. 125 crores from IL&FS Investment Managers (IIML) and UAE-based Sabre Abraaj Private Equity Fund I. Rs. 75 crores was put in by Sabre-Abraaj, while Rs. 50 crores was infused by IIML. Members from the two companies will join the board of Ramky. The investment of Rs. 125 crores amounts to 13.5% of equity placed with the two investors while the remaining 84.5% is held by the promoters. About 1.1 mn shares of Ramky Infrastructure have been placed with the investors at a price of about Rs. 1146 per share, taking the EV of Ramky at Rs. 925 crores.

Ramky Infrastructure has been undertaking several BOT projects including roads, highways, industrial parks, irrigation canals and residential projects. The order book position of the company stands at Rs. 2300 crores. The investment will be used to bid for larger construction projects, investment in BOT projects and working capital requirements. The company will also look at the option of entering the capital markets in the next one year to raise funds.

IIML’s investment in Ramky is part of its $1 bn funds planned for the year. Of the $1 bn planned for investment, at least $250 million has been invested in infrastructure firms. This is also the first investment of Sabre Abraaj Private Equity, a 50:50 JV between Sabre Capital Worldwide, Inc. and UAE-based Abraaj Capital. Recently the two investment firms launched the Sabre Abraaj India Private Equity Fund I and the first recipient of funds is Ramky (See Related Post).

Read The Economic Times article.

Sabre Capital plans $1bn India fund

Sabre Capital Worldwide, Inc. may launch a new $1 bn fund within the next 9-12 months. Sabre had earlier set up an India-specific $350 mn private equity fund. The company has already raised $50 mn of the $350 mn fund. The second and final tranche of capital, which will include the entire balance amount, will be raised by February.

The fund, called Sabre Abraaj, has already made an investment of $16 mn in an unlisted mid-sized infrastructure company based in Hyderabad. The fund is looking at mid-level corporates and may invest in the range of $15-50 mn. About 50-60% of the investors in the fund are from the Middle-East, while the others hail from Europe, the US and East Asia. Though there is a 10-year commitment for investments, the company intends to give at least 2-3 times returns within four years to investors.

Read the Business Standard article.