Siddharth Parekh's Paragon Partners raises US$ 120 million for its first PE fund

Mumbai: Siddharth Parekh-led mid-market private equity firm Paragon Partners on Monday announced the completion of fund-raising for its maiden private equity fund, Paragon Partners Growth Fund - I, securing commitments of approximately $120 million, the firm said in a statement.

Funds were raised from a diverse mix of domestic and global investors. The fund’s limited partners (investors of a private equity fund) include a large sovereign wealth fund, a development financial institution, funds of funds, insurance companies, family offices and high networth investors (HNIs).

Paragon Partners, founded by Siddharth Parekh and Sumeet Nindrajog, had raised $50 million (around Rs300 crore) in its first close in March 2016.

“Achieving our final close on our first fund is an important and exciting milestone for us. We are today very well positioned to pursue the opportunity we have identified in the mid-market in India,” said Siddharth Parekh, co-founder and senior partner at Paragon Partners.

Paragon Partners targets investments in the mid-market space in India and focuses on opportunities in core sectors, including consumer discretionary, financial services, infrastructure services, manufacturing and industrials and healthcare services. The firm pursues a growth capital strategy that involves an active role in value creation in its portfolio companies, especially in the areas of business development, operational efficiencies and organisational development.

Paragon Partners typically makes investments ranging in the ticket size of $10-15 million per transaction, targeting significant minority ownership stakes. The fund has already made four investments aggregating approximately $45 million. In September 2017, one of the fund’s early portfolio companies, Capacit’e Infraprojects Ltd, went public in an initial public offering that witnessed an oversubscription of 186 times.

“We are confident that our highly experienced investment team, deep sector expertise and disciplined investment approach will enable us to capitalise on the attractive fundamentals offered by the mid-market segment in India. We will continue partnering with talented management teams to propel their businesses,” said Sumeet Nindrajog, co-founder and senior partner at Paragon Partners.

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