New Delhi, May 6 -- Synergy Capital, a Dubai-based private equity fund manager set up by former ArcelorMittal executive Sudhir Maheshwari, has marked the first close of its latest Asia-focused private credit fund after mopping up about 70% of the target corpus.

The firm, which makes investments through private equity, private credit, and special situations bets, said Tuesday it has received commitments of $715 million for the Synergy Capital Fund III. The fund has a target corpus of $1 billion, the investor said in a statement.

"This key milestone for our Asia-focused Private Credit Fund was achieved with the full commitment of our existing and new global limited partners across Europe, North America, Asia, and the Middle East, underscoring strong investor confidence in our strategy and execution," the firm said. It expects to make the fund's final close by May next year.

The firm said that it has deployed about $1.2 billion from its predecessor credit funds under the same strategy and that it has scored nine exits harvesting about $850 million through these transactions.

The new fund has a mandate to invest in industrial and infrastructure assets through a blend of private credit solutions and tactical private equity exposure. It made its first bet in March this year, investing about $36 million to extend a loan facility to a Singapore-based offshore services company.

Earlier this month, the fund entered into a binding commitment to acquire majority stakes in three Indian power assets from the GMR Group for a total of $77 million. The fund is on track to deploy approximately $400 million by the end of the year.

Maheshwari set up Synergy in 2015 after he stepped down from ArcelorMittal's group management board following a 26-year-long career. The firm invested in JSW Cement in 2021 and explosives manufacturer SBL Energy Ltd last year. It also invested $60 million in a Shapoorji Pallonji Group company in the UAE in December 2023.

Synergy Capital operates out of offices in Dubai, London, Singapore and Mumbai. It backs companies in the industrial, metals and infrastructure sectors across Europe and emerging economies like India and Southeast Asia. The firm hit the final closing of its second fund at $604 million in November 2023.

Published by HT Digital Content Services with permission from VC Circle.