Private equity (PE) firm BanyanTree Finance Pvt. Ltd has made its second investment in the auto finance sector, acquiring a minority stake in Kanakadurga Finance Ltd (KFL). BanyanTree and Kanakadurga Finance did not disclose the investment size, but two people aware of the transaction said the PE firm had invested close to $10 million from BanyanTree Growth Capital Fund II in the non-banking financial company (NBFC) for a significant minority stake. In 2012, the PE firm had bought a minority stake for an undisclosed sum in Jaipur-based NBFC Esskay Auto Finance Pvt. BanyanTree Finance advises the $100 million BanyanTree Growth Capital and the $175 million BanyanTree Growth Capital-II funds, which are India-focused structured PE funds that provide capital to mid-market firms with promising growth prospects.

Source: Mint May 16, 2017 18:56 UTC