IIFL fund leads $130 mn investment in Northern Arc Capital

Non-banking financial company Northern Arc Capital Ltd said on Tuesday that it has secured a fresh investment of Rs 910 crore (around $130 million) from a clutch of institutional investors.

IIFL Special Opportunities Fund and Standard Chartered Private Equity (SCPE) — both existing investors — along with Affirma Capital contributed to the round, Northern Arc Capital said in a statement.

The IIFL fund was floated by IIFL Asset Management Ltd while Affirma Capital is a newly-formed, independent private equity firm to be managed by the team at SCPE after British bank Standard Chartered Plc said last December that it was exiting its private equity business.

An IIFL representative told VCCircle that the Special Opportunities Fund had contributed $100 million while Chennai-based Northern Arc said the secondary component of the transaction stood at around $43 million.

The development comes four months after VCCircle reportedthat Northern Arc Capital was in talks with several private equity firms and strategic investors for fresh funding ahead of a planned initial public offering.

Dvara Trust, LeapFrog Investments and Accion — all impact investors — will partially sell their stake in the company as part of the transaction.

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