NewQuest makes second deal from Fund III

The direct secondaries firm, which is planning to open a Mumbai office, has made a $21m investment in construction and engineering companies in India.

NewQuest Capital Partners has made the second deal from its recently closed third fund by investing in the only two assets held in private equity firm Paragon Partners‘ portfolio – both of which are India-based.

The direct secondaries firm, which is planning to open a Mumbai office this year, invested $21 million in construction company Capacit’e Infraprojects and precision engineering company Maini Precision Products through a combination of primary and secondary shares, according to a statement.

Hong Kong-headquartered NewQuest invested alongside Infina Finance, an investment company owned by Mumbai-based investment bank Kotak Mahindra.

Capacit’e Infraprojects is an engineering, procurement and construction company with projects in Mumbai, Bangalore and the National Capital Region surrounding New Delhi. Maini manufactures and supplies high precision engineering components to automotive and aerospace companies including Volvo, Magneti Marelli and GE Aviation.

NewQuest’s investment came from its latest fund, 2015-vintage NewQuest Asia Fund III, which closed on $540.5 million, beating its $500 million target.

In September, the firm made its first investment from Fund III when it acquired back-office outsourcing firm Integreon from Actis and a unit of Philippines-based Ayala Corporation for an undisclosed sum.

Among its Indian investments are financial services company Ujjivan as well as the India-focused assets of venture capital firm Draper Fisher Jurvetson, both of which it made from its $316 million NewQuest Asia Fund II.

NewQuest has raised $1.25 billion across three funds and acquired stakes in over 45 companies since it was established in 2011.