PE fund L Capital Asia will not commit more funds to existing India investments

Private equity fund L Capital Asia has announced it will not commit more funds to its existing investments in India. The fund is sponsored by LVMH Moet Hennessy Louis Vuitton SA and Groupe Arnault. Presently, L Capital Asia has investments in Fabindia Overseas, and Genesis Luxury Fashion. The former was made in 2012 while the latter was in 2011.

L Capital Asia had made investments in India from its first fund of 637 million dollars (Rs 4,249 crores) that was set up in 2009-2010. In 2014, a second fund of 1 billion dollars (Rs 6,671 crores) was raised. After initial investments, L Capital has gone slow on committing funds to India. The reason is the prevailing macro-economic environment in the country. This environment has destroyed the investing landscape of the country. Only once the regulatory and macro environment improves L Capital Asia will reconsider investing in the country.

While L Capital has gone slow in India, internationally in the last three years it has made 15 investments in countries like Australia, South Korea, the UAE, China, Singapore, Taiwan and Europe. On average L Capital looks at an investment period of 3-7 years for each asset, but it may vary from case to case.