Creador set for $105m first close on Fund II

26.07.13 / Author: Tim Burroughs, Asian Venture Capital Journal

India and Southeast Asia-focused GP Creador is expected to reach a first close of $105 million on its second fund by mid to late August. The full target is $250 million.

Creador launched the fund in May, barely four months after closing its debut vehicle. Speaking to AVCJ at the time of launch, Brahmal Vasudevan, the private equity firm’s founder and CEO, said existing investors were willing to put in $100 million and there was soft circle interest for another $50-75 million.

Fund I accumulated $132 million and investment started almost immediately after the first close of $80 million in December 2011, which meant that it was around two thirds deployed by May of this year.

Part of the reason for Creador’s compressed time frame is that the difficult fundraising environment meant the GP was unable to meet its original target for Fund I of $300-350 million. The firm feels it is able to invest $80 million per year, but working with a smaller-than-expected pool of capital, it has been burning through the dry powder reasonably quickly.

A first partial exit came in April as the firm sold nearly half of it 10% stake in Malaysian restaurant chain and instant coffee brand OldTown White Coffee for around $15 million, generating a 2x money multiple.

Vasudevan set up Creador in 2011 after leaving Indian GP ChrysCapital Partners.