October 24, 2016, Mumbai: Paragon Partners Growth Fund - I ("Paragon Partners") announced the successful completion of an investment transaction in two of its portfolio companies - Capacit'e Infraprojects Limited (“CIL”) and Maini Precision Products Limited (“MPPL”). The investors comprised Infina Finance Private Limited (“Infina”), an investment company jointly owned by Kotak Mahindra Bank and the Kotak family, which is an existing investor in Paragon Partners, and NewQuest Capital Partners ("NewQuest"), a leading secondaries private equity platform focused on the Asia-Pacific region. NewQuest and Infina invested an aggregate amount of US$21 million in the two companies through a combination of primary and secondary shares.
CIL is a leading EPC player based in Mumbai engaged in the construction of high-rises, super high-rises, factories and allied infrastructure for a clientele comprising some of the leading real estate developers, corporates and institutions in India. With over 1,000 personnel deployed across multiple projects and locations, CIL enjoys an expanding footprint in the high-velocity regions of Mumbai, NCR and Bengaluru.
MPPL is a Bengaluru-based manufacturer and supplier of high-precision engineering components and assemblies catering to the global automotive, industrial and aerospace sectors. Founded in 1973 by the Maini family, MPPL commenced operations as a supplier of auto parts to Bosch and since then has diversified to supply to a marquee list of automotive OEMs and Tier I component suppliers including Eaton, Magneti Marelli and Volvo. Over time, MPPL has developed strong competencies and qualifications in the aerospace sector and currently supplies airplane parts to leading industry players such as Snecma, GE and Marshall.
Siddharth Parekh, Co-Founder and Senior Partner, Paragon Partners, said "We are pleased to welcome the investment by NewQuest and Infina into Capacit'e and MPPL. Both companies have stellar brand equity, deeply entrenched relationships and have witnessed exponential growth under highly credible and experienced leadership teams. The investment by NewQuest and Infina underscores our confidence in the growth potential of these companies."
Amit Gupta, Partner and Chief Operating Officer at NewQuest, commented "We are pleased to partner with Paragon to invest in Capacit’e and Maini. We were impressed by the management teams of both the companies. They have built great businesses with a focus on quality that has made them reliable and preferred partners of their clients. We look forward to working closely with the Paragon team and the companies to help them achieve their business plans."
Commenting on the transaction, Venkat Subramanian, Chief Executive Officer, Infina, said “We are excited to partner with Paragon Partners for our investment in Capacit’e. We believe Capacit’e is emerging as a contractor of choice among several leading developers in India on the back of its strong execution track record and dynamic & credible management team. Paragon Partners has brought significant value to the company and we look forward to partnering with the management team on their expansion plans.”
About Paragon Partners
Established in August 2015, Paragon Partners Growth Fund is an AIF-Category II private equity fund investing in mid-market private companies in India. Paragon Partners will focus largely on five key sectors comprising consumer discretionary, financial services, infrastructure services (capex light), industrials and healthcare services and will look to invest in companies where it can play an active role as a shareholder while taking a minority position. The firm targets an investment size of US$10-20 million per transaction and an ownership stake of plus-15%.
About NewQuest Capital Partners
Established in 2011, NewQuest is Asia’s leading secondaries private equity platform. The firm specializes in providing bespoke liquidity alternatives to private equity investors with investments in emerging Asia, particularly China, India and South East Asia. Over the past five years, NewQuest has raised three funds with aggregate capital commitments of over US$1.25 billion, having acquired positions in over 45 companies. For more information, please visit www.nqcap.com.
About Infina Finance Private Limited
Infina Finance Private Limited is an NBFC jointly owned by Kotak Mahindra Bank and Uday Kotak family and is primarily engaged in proprietary equity investments. Infina runs an investment book of over Rs. 2,000 crore through a mix of long-short absolute return investments, long only listed equity and private equity/ venture capital investments.