India: EIB Global Announces $40 Million for Private Equity Fund Supporting Digitalisation of Indian SMEs
- The investment by EIB Global in the private equity fund Amicus Capital Partners II leverages digitalisation and technology to overcome geographic limitations.
- Through its digitalisation and market access investment themes, the fund will target sectors like healthcare, consumer products and services, financial services, technology and business services, and specialty manufacturing.
Today, Kris Peeters, Vice-President of the European Investment Bank (EIB) and Mahesh Parasuraman, Partner and Co-founder of Amicus Capital, announced the signing of an EIB investment of up to $40 million in the private equity fund Amicus Capital Partners Fund II. It will support investments in Indian small and medium-sized enterprises (SMEs) operating in various economic sectors.
The fund seeks to leverage digitalisation and technology to overcome geographic limitations and facilitate deeper market penetration. It does this by prioritising investments in digital-first business models, working with companies to strengthen their existing technology infrastructure, and helping management design clear digitalisation roadmaps to boost digital transformation in conventional businesses.
The fund’s strategy of using digitalisation to support market access across a range of economic sectors is well aligned with the objectives of the Global Gateway initiative. 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 digitalisation 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, “We are 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 catalyse 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 digitalisation and market access efforts.”
Background Information
About the EIB
The European Investment Bank 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 puts the expertise of our in-house engineers and economists at the promoters’ disposal to develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms — loans at competitive interest rates, with durations aligned with the projects they finance. And through partnerships with the European Union and other donors, it can often provide grants to further improve a project’s development impact.
About EIB Global in India
The EIB is the largest multilateral public bank in the world. In 2022 it financed around €10.8 billion in investments outside the European Union 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 in transport, energy, agriculture, fisheries and forestry, as well as in the country’s SMEs.
About EIB Global in Asia
EIB Global has been providing economic support for projects in Asia since 2022, facilitating long-term investment under favourable conditions and offering the technical support needed to ensure that these projects deliver positive social, economic and environmental results. For 25 years, the EIB has supported economic development in Asia and the Pacific. The projects it finances improve people’s lives — from cutting travel times in Bangalore with a new metro line, to providing cheaper, cleaner energy to western Nepal. The Bank has chosen to focus lending in Asia on climate action. It also works to include gender equality in all projects, ensuring that women, men, girls and boys benefit from them equally and equitably.
About the Global Gateway initiative
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. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain. Alongside its partners, fellow EU institutions and Member States, the EIB aims to support investment of €100 billion (around a third of the initiative’s target) by the end of 2027, including in India and Asia.
About Amicus Capital
Amicus Capital (www.amicuscapital.in) 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 & business services, and specialty manufacturing. Two if its main investment themes are Digitalisation and Market Access. Amicus Capital invests in fast-growing, capital-efficient businesses looking to scale up once the business model has been proven, and partners with entrepreneurs to create segment/category leaders.
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