The focus will be on companies in emerging sectors and cities in India which are experiencing strong growth but because they remain below the radar of mainstream international investors, still have attractive valuations.
"Traditionally, private equity firms in India have chased the same limited number of opportunities in cities like Bangalore and Mumbai. By looking beyond that, Aureos will be able to access strong companies at valuations below the rest of the market," said Sev Vettivetpillai, CEO, Aureos.
"The Aureos India Fund II will also meet investors'' demand for investment opportunities in Sri Lanka and Bangladesh which have potential for strong growth and links with the Indian economy but where few private equity funds operate," he added.
The fund will target around 15 per cent of committed capital at Sri Lanka and Bangladesh.
Aureos has a long track-record and made some very successful and high profile investments in South Asia, for example in Sri Lankan financial technology provider Millennium IT, which was sold to the London Stock Exchange Group.
The Aureos India Fund II will build on the success of Aureos'' 2006 vintage South Asia Fund (ASAsF), which has delivered three full and three partial exits to date and strong returns for investors. It will be run by Aureos' three partner office in Mumbai, supported by four other investment professionals.