Banyan Tree II

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The proposed project is an investment in BanyanTree Growth Capital II (“BanyanTree II” or the “Fund”), focused on financing fast growing small and medium enterprises (“SMEs”) in relatively neglected sectors of the Indian economy. These include areas such as manufacturing and niche industrial segments, which have traditionally received a very small portion of private equity capital in comparison to their total contribution to the Indian economy. BanyanTree’s core proposition centers around its ability to find companies that are growing and capital constrained but reluctant to dilute to the extent a traditional private equity financing would require. BanyanTree has positioned itself as a provider/arranger of hybrid capital based on the team’s long experience of structured finance. The proposed project is a successor fund to BanyanTree Growth Capital I (“BanyanTree I”) which raised about US$100 million in 2008-2009. BanyanTree I has invested in eight companies with one partial exit.