Carlyle invests $27.7 mn in Repco Fin

Mumbai: Global private equity firm, the Carlyle group has invested $27.7 million in the Chennai-based Repco Home Finance.

The investment is routed through Carlyle Asia Growth Partners III, a $680 million fund that invests in high growth companies in India, China, Japan and Korea.

Repco, a subsidiary of Repatriates Co-operative Finance and Development Bank, will use the funds to improve its equity base and thereby expand its loan portfolio.

Shankar Narayanan, managing director and head, Carlyle Growth Capital team in India, said, “Indians give a high importance to home ownership. Repco’s business model is focused on fulfilling this basic need in a customer-friendly and transparent manner. Repco is a good example of a company that has built a strong business in a short time. Carlyle’s network of relationships may act as a catalyst in Repco’s evolution into a top player in the housing finance market.”

“There will be a huge demand for decent housing even in the tier II & III cities,” he added.

Repco provides loans to its customers for construction and0 purchase of residential plots and houses, repairs and renovations of existing houses, and other construction and commercial loans.

The company has a network of 26 branches across Tamil Nadu, Andhra Pradesh, Karnataka and Pondicherry and is looking to aggressively expand its branch network and loan portfolio.