The firm has been set up with the corpus of $40 million, out of which, $30 million has been contributed by Mr. Malhotra and rest $10 million has been raised from an NBFC.
The estimated fund size of newly setup private equity fund is US$ 150-200 million.
Commenting on the details of the private equity fund, Mr. Malhotra said, “Ncubate Capital has been established with a settling corpus of USD 30 million; the fund size would finally close around USD 150-200 million (Rs.750 crore – Rs.1,000 crore), strategically to fund entrepreneurs looking for funds ranging from USD 3-15 million (Rs. 15 crore – Rs. 75 crore).”
Unlike other PE players, the biggest advantage of Ncubate Capital is that a major part of this fund is the ‘house money’ accruing out of Mr. Malhotra’s selling-off of 74% stake in Luminous Power Technologies to Schneider Electric recently, the company said in a press release.
Currently there are six partners at Ncubate and the fund's preferred areas of investments are consumer durables, FMCG, renewable energy and cleantech.