HDFC’s Chairman Deepak Parekh’s son Siddharth Parekh has launched a private equity fund named Paragon Partners of $200 million with his friend Sumeet Nindrajog. Out of $200 million, the fund is expected to close $60 million by December and hopes to raise the rest amount in coming 9-12 months.
After raising the first tranche, it will start making investments, as per a LiveMint report, and raise more funds from foreign investors. The fund will invest in areas of consumer, automobile, infrastructure services and financial services with a ticket size of $10-20 million and it intends to buy 15-30% stake in each company.
Apart from this, Siddharth has also invested in startups as an angel investor in his personal capacity including CreditVidya, IndiaLends, MobieFit Technologies, HandyTrain,and Seynse Technologies.
Siddharth has worked UK-based emerging markets PE fund, Actis for 7 years at its Mumbai Office. Prior to Actis, he was associated with International Finance Corp. based in Washington DC as an investment analyst. Nindrajog is co-founder and executive director at Mumbai-based Hover Automotive India. He previously worked at Ares Management at its PE Group in Los Angeles and UBS in the investment banking group.
This is not the first time when PE veterans have launched a fund after quitting jobs. In March 2015, Carlyle Group MD Mahesh Parasuraman quit his job and joined hands with Sunil Vasudevan, formerly a partner of India Value Fund Advisors, to launch a growth capital.