Creador nets 2.8x return on part-exit from Cholamandalam

06.11.15 / Author: Tim Burroughs, Asian Venture Capital Journal

Creador has made a partial exit from Cholamandalam Investment & Finance (CIF), an India-based non-banking finance company (NBFC), securing a 2.8x multiple and a 33% IRR in US dollar terms.

This is the Southeast Asia and India-focused private equity firm’s third liquidity event, following a partial exit from Malaysia’s OldTown White Coffee in 2013 and a full exit from India’s Repco Home Finance in 2014. The three exits amount to 65% of the committed capital in Fund I.

The divested stake – for which the proceeds were $21.5 million – represents 36% of Creador’s total holding in CIF. The company was Creador’s first ever investment. It paid $21.3 million for a 5% interest in March 2012.

CIF was established in 1978 and has more than 534 branches nationwide. It provides vehicle home equity and housing finance solutions, and also works with micro, small and medium-sized enterprises (MSME). The company had more than $4 billion in assets under management at the end of the 2015 financial year and net profit of $69.3 million.

Creador invested in CIF alongside Multiples Alternative Asset Management, which made a partial exit from the business in January of this year. Other backers include the International Finance Corporation (IFC), Apax Partners, WestBridge Capital, Amansa Capital and Aquarius Investment Advisors.

In September, Creador reached a first close of $250 million on its third fund, which has a full target of $450 million. Fund I came in at $130 million while Fund II closed last year at $330 million.