Building great businesses requires more than just capital. That’s why, at Everstone, we adopt an active hands-on approach to support and provide strategic guidance to our partners. Our experienced team offers a broad range of specialist and sector skills, while our strong local and global network enables us to help businesses identify and realise their true growth potential.
With a focus on investments primarily within India and Southeast Asia and over 50 dedicated professionals located across India and Singapore, we have an on-the-ground advantage in sourcing and evaluating opportunities. We make investments through control, minority and platform investing.
across private equity
dedicated to private equity
Control & Minority Investing
We support our partner companies, helping them achieve specific goals through our global expertise, operational insight, vast network and capital.
We build new businesses, establishing experienced management teams and capitalising the business from day one. Backed by our sector expertise, local presence and wide network, we identify, evaluate, build and scale new business opportunities.
Over the years, Everstone has invested in more than 30 portfolio companies in the consumer and consumer-led sectors across India and Southeast Asia. These industries include healthcare, retail, F&B, financial services, education and business services, among others. With a focus on the long term, we only invest in established businesses that have proven track records and true growth potential.
Ozone Overseas Ltd. (Ozone)
Ozone is a leading Indian manufacturer and distributor of architectural hardware products and solutions.
Building Supplies, Construction, Manufacturing
S. Chand & Company Pvt. Ltd. (S.Chand Publishing)
Founded in 1939, S. Chand Publishing is the second-largest educational publishing house in India.
Faces Cosmetics Ltd. (Faces)
A Canadian branded cosmetic company, Faces Cosmetics, stocks a wide range of cosmetics, personal care accessories and skin care products.
India, Southeast Asia
Regen Powetech Pvt. Ltd. (ReGen Powertech)
ReGen Powertech is one of the largest manufacturers and suppliers of gearless Wind Energy Generators to the Indian market with an exclusive license from Vensys Energy AG in Germany.
R&R Salons Pvt. Ltd. (YLG)
Launched in 2009, YLG operates a chain of hair and beauty salons in Bangalore and Chennai, offering a range of wellness services including hair, spa and hygiene facilities.
Modern Foods Industries (India) Ltd. (Modern)
Established in 1965 by the Government of India, Modern was the first branded bread in India. Today, Modern is one of India’s most recognised brands and produces a range of white, sweet, health and wellness breads.
Food & Beverage
Hinduja Leyland Finance (HLF)
Sponsored by Ashok Leyland and the Hinduja Group, HFL is a non-deposit-taking, non-banking Finance Company regulated by the Reserve Bank of India. The company is primarily focussed on the financing of commercial vehicles.
Everstone owns and operates Burger King’s branded restaurants across India and Indonesia as part of its F&B Asia portfolio.
Food & Beverage
Established in 2011, Indostar has become the go-to lender for Indian mid-sized and emerging corporations in the last five years, driven by the need for bespoke financing solutions.
INDOSTAR CASE STUDY
We believe the success of our investments can only be achieved with an excellent team. Our private equity professionals bring a wealth of sector knowledge, best global practices and excellence to each and every deal.
LEARN MORE ABOUT OUR PRIVATE EQUITY TEAM
Indostar case study
Established in 2011 by Everstone in partnership with Goldman Sachs and Ashmore, Indostar is India’s pioneering structured debt non-banking finance institution focussed on serving mid-sized corporations and SMEs (small and medium enterprises). Driven by a need for bespoke financing solutions, the firm has since become the go-to lender for mid-sized and emerging corporations in the last five years. During this time, Indostar has helped companies across sectors to extract the best leverage from a diverse set of assets and cash flows in the form of secured structured debt. In the process, it has also become the preferred originator of high-quality debt assets, ranging from mutual funds to focussed debt funds, for asset managers. From its humble beginnings in 2011, Indostar now has assets of more than INR 46 billion with diversified debt lines of more than INR 30 billion. Currently, the firm is building on its next set of growth vectors, utilising its structured debt expertise to serve smaller businesses.
Identifying a growing and under-served market
The Indian debt market has traditionally been dominated by bank lending, with public sector banks providing more than 75 per cent of all debt. But despite increased lending from large private sector banks, many segments, other than financially excluded retail and SME customers, remained under-served. Emerging and mid-sized corporations have been responsible for large contributions to national growth and employment, and many have unique financing needs. However, few banks have corporate lending teams and fewer still have the bandwidth and skills to serve companies beyond the largest and best rated, resulting in this large and crucial segment remaining under-served.
With the exit of a large number of foreign bank-led players in the aftermath of the 2008 crisis, Everstone recognised that this already under-served sector was now further starved of options. And with most NBFCs and private banks focussing their resources on the retail finance market, there was an immediate need for financial solutions for mid-sized companies with high-quality credit.
Supported by a large pool of experienced financial services professionals, Everstone identified three key success factors to serve this segment profitably over 5–10 years:
A financial institution with large and patient capital, capable of lending without risk concentration while still serving mid-sized companies with offerings of relevant size
A highly skilled and specialised management team with deep Indian market structuring experience coupled with global exposure
A strong institutional platform with best-in-class governance and professional management depth beyond structuring teams, and extending to risk management, finance, treasury and technology
Realising that these success factors were not available in the market, and convinced that the opportunity was both real and addressable through institutional execution, Everstone set out to build the platform from the ground-up.
Institutionalising institution building
As the anchor sponsor of the company, Everstone helmed the building of the platform. Our role consciously evolved across three distinct phases:
Setting up and starting operations
We brought our own platform resource expertise to the task, with as many as 12 professionals working on various aspects. These ranged from business plan creation and recruitment to the creation of regulatory entities and coordination with other sponsors to convert capital commitments to a funded NBFC. Everstone HR/IT and infrastructure team members were also deployed to set up facilities and policies, creating governance and risk management policies to get in the first bank lines and filing the first set of regulatory returns. In addition, we appointed one of our most senior resources as the full-time CFO and head of treasury and operations. Within a year from conceptualisation, the company was up and running.
Building a strong institution with a right to scale
With a strong foundation in place, Everstone focussed on improving the governance, people and processes at Indostar for the next 24 months, bringing in the best industry talent to the core business and setting up robust systems and processes for risk management and treasury. In addition, we closely observed and supported the creation of IndoStar’s corporate culture and organisational DNA. We also inducted senior industry professionals with outstanding track records to the board, and refined and enhanced reporting.
In 36 months, Indostar had evolved from a well-capitalised start-up to an entity with AUM of INR 40 billion, raising almost INR 30 billion of debt (~3x leverage) from more than 20 banks and mutual funds. It had also deployed funds with almost no stressed loans (less than 0.2% of assets under management), which enabled it to establish a pre-eminent position in chosen segments beyond its size. By the end of phase 2, Everstone took a step back from the foreground to the background as the company matured into a large institution in its own right.
Building a multi-engine growth platform
At the end of four years of operations, Indostar had a stable core and was scaling rapidly. It started expanding radially, broadening its self-imposed narrow focus on mid-sized high-credit-rated corporations to smaller businesses in select sectors and segments. At the same time, it continued to keep its edge and institutional focus in structuring secured financial solutions in its offerings and growth plans. Indostar also introduced new talent and institutional capabilities for a foray into more “retail” segments. To support Indostar’s aspirations, we switched our focus towards planning, talent acquisition and the screening of inorganic opportunities for new growth vectors.
As Indostar charts its course in the next phase of growth, it is supported by a strong pool of partners. These include lenders from some of the best banks and mutual funds in the country, customers comprising the largest and highest-rated companies in different focus sectors, a valued set of co-lenders that depend on Indostar’s structuring capabilities, the best talents in the industry and, now, a base of smaller business and individual customers of its trademark tailored solutions.