CX Partners: partnering India's mid-market innovators for the long haul

CX Partners is a Delhi-based private equity group that calls itself a leading investor in the Indian mid-market, with a long track record of delivering returns through cycles. The firm's official site describes a team that has worked together for over fifteen years, built on a culture of collaboration and candid discussion — and claims over 100 years of cumulative investment experience across more than 100 investments.

The thesis: involved partnership with exceptional businesses

CX Partners' stated strategy is to partner owners and managers of exceptional, innovative businesses and help them build further upon their strengths. It describes its approach as "involved ownership" with alignment of interests — pushing investee companies on value creation while maintaining what it calls the fine balance between entrepreneurial energy and prudence. Over the years it has earned a reputation, in its own words, as fair and credible partners for outstanding entrepreneurs and management teams.

Fund history and institutional backing

The firm's maiden fund was a $515 million growth fund, among the most active India-dedicated pools of capital of its generation, backed by global institutions including AlpInvest, Goldman Sachs, Asia Alternatives and Adams Street Partners. Its second fund reached a $250 million first close, and the UK's development finance institution British International Investment committed $25 million to it. The firm manages SEBI-registered vehicles including the CX Alternative Investment Fund and CX Alternative Investment Fund 3, both Category II alternative investment funds.

Portfolio across consumer, financial services and healthcare

CX Partners' investments span healthcare, consumer, financial services and IT. Its portfolio has included financial-services businesses such as Indifi Technologies, Ummeed Housing Finance and Ujjivan Small Finance Bank, healthcare names such as Veeda Clinical Research, Gamot API and Sabine Hospital, consumer plays such as Sapphire Foods and Thalappakatti Hotels, and technology companies such as Exotel and Betterplace. Earlier investments included Minacs BPO, Sutures India and Thyrocare Technologies. The breadth shows a mid-market investor comfortable writing large minority cheques and working with promoter-led businesses.