Oman-India private equity firm's follow-up fund surpasses the returns of its initial fund, as it seeks investments from limited partners once more.
The Oman India Joint Investment Fund (OIJIF), a cross-border private equity firm established by the Oman Investment Authority (OIA) and the State Bank of India (SBI), has delivered noteworthy success in its second fund. According to recent reports, the second fund has outperformed its initial fund significantly, generating higher returns through accelerated divestments and strategic portfolio management.
In 2024, the OIJIF undertook an accelerated pace of divestments, monetizing nine assets from its portfolio. This swift exit strategy, compared to the first fund, likely contributed to improved liquidity and returns for the second fund's limited partners.
The OIJIF's investment strategy focuses on a wide range of sectors including consumer goods, financial services, healthcare, niche manufacturing, and technology within India’s dynamic market. Companies such as ShopKirana are part of its portfolio, reflecting its aim to back high-growth sectors.
The specific investments made by OIJIF are not fully disclosed, but the fund's focus on sectors with strong growth potential and active portfolio management underpin the improved performance of the second fund.
In addition to the OIJIF's achievements, other notable events in the private equity world include WeH Ventures fully returning its debut VC fund with an exit from a wealth-tech startup, and Bain Capital being on course for another exit from its India portfolio.
While details about the OIJIF's third fund investments are not available, it is known that Oman-India collaborations continue to target growth sectors and align with national economic priorities.
In conclusion, the OIJIF's success in its second fund is a testament to its strategic approach in private equity investing, demonstrating the potential for cross-border collaborations to drive growth and generate significant returns in India's dynamic market.
In 2024, the OIJIF's accelerated divestments strategy in its second fund likely improved liquidity and returns for its limited partners, showcasing the financial benefits of its investment decisions. The OIJIF's focus on high-growth sectors, as seen in its investments in companies like ShopKirana, has contributed to the outperformance of the second fund compared to the initial one.
