Rakesh Malhotra forays into venture capital

Rakesh Malhotra, founder of the SAR Group has forayed into venture capital space by establishing Ncubate Capital Partners to fund micro, small and medium enterprises across the country.

The firm has been set up with the corpus of $40 million, out of which, $30 million has been contributed by Mr. Malhotra and rest $10 million has been raised from an NBFC.

The estimated fund size of newly setup private equity fund is US$ 150-200 million.

Commenting on the details of the private equity fund, Mr. Malhotra said, “Ncubate Capital has been established with a settling corpus of USD 30 million; the fund size would finally close around USD 150-200 million (Rs.750 crore – Rs.1,000 crore), strategically to fund entrepreneurs looking for funds ranging from USD 3-15 million (Rs. 15 crore – Rs. 75 crore).”

Unlike other PE players, the biggest advantage of Ncubate Capital is that a major part of this fund is the ‘house money’ accruing out of Mr. Malhotra’s selling-off of 74% stake in Luminous Power Technologies to Schneider Electric recently, the company said in a press release.

Currently there are six partners at Ncubate and the fund's preferred areas of investments are consumer durables, FMCG, renewable energy and cleantech.

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