According to reports, Aureos Capital, an emerging markets private equity fund manager focused on the SME space, has started raising its second fund which will invest in India and also operate in Sri Lanka and Bangladesh. Aureos India Fund II is targeting $200 million and will be a successor to Aureos South Asia Fund, which had already raised around $200 million, a top official told VCCircle.
“The new fund will focus on investing in Tier II and Tier III cities in India. Aureos India Fund II will have the ability to invest up to 15 per cent in Sri Lanka and Bangladesh,” said Balaji Srinivas, managing partner of Aureos India Advisers Pvt Ltd. The London-headquartered firm has started discussions with its existing investors, which include players like the CDC Group and the Asian Development Bank.
Its first fund has invested in HHV Solar Technologies and Auro Mira Energy.
Further, in May this year, The Asian Development Bank (ADB) had said that it would be investing $60 million to help set up three venture capital funds dedicated to nurturing new climate change technologies. The funds will primarily target the markets of the People’s Republic of China (PRC) and India, which are actively promoting clean energy and sustainable technologies.