|IDEA , IEP and GSC Launch eTEC
|Observer Corporate bureau - Mumbai.
Washington DC area venture capital firm International Equity Partners, LP (IEP) and the
Mumbai based Indian Direct Equity Advisors Pvt. Ltd.(IDEA) announced the launch of their
second India-focussed venture capital fund, eTEC Venture LLC (eTEC).
GSC Partners, a global $3 billion private equity firm, leads eTEC's group of investors
with a $25 million capital commitment. ETEC will remain open for additional subscriptions
through March 2001.
IDEA in a press statement said eTEC will take substantial minority stakes in its target
companies and pursue value addition strategies to help acquire customers, establish
strategic alliances, and secure further rounds of financing.
The managers have already shortlisted several companies engaged in software and IT enabled
services as potential investments.
The dual presence of IEP and GSC Partners in the United States and IDEA in India will
enable eTEC to effectively provide strategic value to companies in the "Indo-Us
Technlogy Corridor", including capital raising in the US and developing raising in
the US and developing an international customer base.
eTEC is a Mauritius-domiciled limited company that will invest in new and existing
ventures in the technilogy, entertainment and communications sectors.
It will invest not only in Indian companies primarily but also in ventures in the US and
other countries that benefit substantially from the huge "mindpool" of
technology-skilled labor available in India.
IEP, headquarted in Northern Virginia, is a private equity firm established in 1993 with
over $200 milion under management in India and Eastern Europe.
IDEA serves as the firm's local advisor in India, both for eTEC and the 1996 launched $ 34
million India Direct Fund, LP (IDF).
The IDF is now fully commited and beginning to return capital, showing annual compound US
dollar returns of 65 per cent on its realized investments as of September 2000.
The IDF's portfolio includes eight Indian companies and two US technology comopanies with
substantial back-office operations in India.