Everstone Capital: Forging Mid-Market Champions

Everstone Capital: Forging Mid-Market Champions and Sustainable Value in India and Southeast Asia

Everstone Capital, the private equity business of the Everstone Group, founded in 2006 by Sameer Sain and Atul Kapur, has emerged as a prominent investor focused on mid-market, control-oriented growth opportunities with a strong nexus to India and Southeast Asia. With assets under management exceeding $8 billion across its various platforms, Everstone has built a diverse portfolio spanning technology, healthcare, financial services, industrials, and consumer sectors. The firm distinguishes itself through a hands-on operational approach, deep sectoral and regional expertise, and a strong commitment to responsible investing. Having returned over $2 billion to investors in the past five years, Everstone continues to deliver compelling returns, making it a significant force in the region's private equity landscape.

I. Firm Overview & Strategy

Everstone Capital is the private equity arm of the Everstone Group, a global firm established in 2006 by Sameer Sain (Co-Founder & CEO) and Atul Kapur (Co-Founder & CIO). Headquartered in Singapore, Everstone has a significant presence in India with offices in Mumbai, New Delhi, and Bengaluru, alongside other global offices in London and New York. The firm's mission is "to build great businesses with extraordinary people," focusing on driving economic growth and creating sustainable value in its core markets.

A. Global & Regional Presence: Everstone Capital maintains a unique "nexus to India and/or Southeast Asia" for its investments, irrespective of the portfolio company's headquarters. This strategy allows it to leverage the region's cost advantages and vast consumer markets while accessing global revenues, particularly in sectors like software. With over 50 dedicated private equity professionals located across its offices, Everstone benefits from an "on-the-ground advantage in sourcing and evaluating opportunities."

B. Investment Philosophy & Strategy: Everstone's investment philosophy is characterized by a "mid-market, control growth, and cross-border" approach. The firm seeks to gain majority stakes or significant influence, enabling it to actively shape the strategic and operational direction of its portfolio companies. Its investment style is described as "highly institutionalized and disciplined," combined with an "entrepreneurial and highly operationally involved value creation culture."

Key aspects of their strategy include:

• Sector Focus: Everstone focuses on five core sectors, demonstrating adaptability to evolving market dynamics:
• Technology Services: A growing area of focus, particularly in SaaS and marketing technology. Everstone sees "converging themes that will arise at the intersection of service and software," leading to more "hybrid service software companies." Investments include Wingify (VWO, marketing tech SaaS), Omega Healthcare (tech-enabled revenue cycle management), Everise, MediaMint, Apexon (digital engineering), and Acqueon. Sandeep Singh, Managing Director at Everstone, highlighted Wingify as one of the "most prominent software buyouts in India."
• Healthcare & Pharmaceuticals: A consistently strong area, including medical devices (Translumina Therapeutics, Integris Health), drug delivery (Softgel Healthcare, Rubicon Research), and hospital services (Sahyadri Hospitals, CPC Diagnostics). Avnish Mehra, Vice Chairman and Head of Private Equity at Everstone Capital, noted that "The demand for healthcare services is growing at a rapid pace," with "medical devices manufacturing space" being particularly exciting due to policy pushes for import substitution.
• Financial Services: Investments in credit and insurance businesses in South Asia.
• Industrials: Selective investments in sub-segments like specialty ingredients (Calibre Chemicals), express logistics, precision engineering, and packaging (Manjushree Technopack).
• Consumer: Benefiting from India's transition to a middle-income economy, with a focus on QSR (Burger King - India and Indonesia, Subway master franchise), packaged goods (Modern Foods), and consumer durables.
• Deal Type & Structure: Primarily engages in buyouts or control investments in mid-market companies with EBITDA in the range of ₹100-250 crore, aiming to grow them to ₹400-500 crore EBITDA before exit. This is executed through a "highly institutionalized and disciplined investment style."
• Cross-Border Opportunities: A key differentiator, focusing on businesses with revenue in developed markets (US, Europe) and an India or Southeast Asia cost base, helping to deliver strong dollar IRRs despite rupee investments.
• Long-Term Partnership: Committed to delivering "long-term investment performance" through active and hands-on involvement.

C. Fund Structure & Capital Sources: Everstone manages over $8 billion in assets across its various businesses (private equity, climate impact, logistics, digital, venture). It has a track record of raising multiple private equity funds:

• Fund I (2006): $425 million
• Fund II (2010): $580 million
• Fund III (2016): $731 million
• Fund IV (2023): ~$500 million (referred to as an "interim" or "bridge" fund).
• Fund V (targeting): Currently seeking $1 billion for its latest private equity fund for India and Southeast Asia, which would be its largest fund to date.

II. Investment Activity & Portfolio

A. Deal Volume & Value: Everstone has a robust investment pace, actively deploying capital across its focus sectors. While specific total deal volume is not always consolidated, its consistent fundraises and portfolio growth demonstrate significant deployment.

B. Key Investments (Examples):

• Wingify (VWO): Acquired a majority stake for approximately $200 million in January 2025, a leading global provider of marketing technology SaaS with over $50M in ARR and 90% revenue from US/Europe.
• Omega Healthcare: A leading tech-enabled revenue cycle management provider, in which Everstone (alongside Goldman Sachs) held a significant stake.
• Translumina Therapeutics: A medical devices company manufacturing cardiac stents, showing strong growth and exports.
• Svatantra Microfin: Everstone (with Multiples Private Equity) invested $230 million in this microfinance institution, which became the second largest microfinance organization in India.
• Softgel Healthcare: A controlling stake acquired in September 2022.
• Calibre Chemicals: An investment of approximately $100 million in 2021.
• Sahyadri Hospitals: Controlling stake acquired in 2019.
• Burger King (India and Indonesia master franchise): Initial investment in 2014, with a partial exit via IPO in 2020.
• Subway (India, Sri Lanka, Bangladesh master franchise): Investment in 2021.
• IndoSpace Logistic Parks: A partnership with Realterm Group, which subsequently attracted investments from Canada Pension Plan Investment Board and GLP.
• Eversource Capital: A joint venture with Lightsource BP for decarbonization solutions in India (renewable energy, e-mobility), managing the Green Growth Equity Fund.
• DSG Consumer Partners: A joint venture with Deepak Shahdadpuri focusing on early-stage consumer businesses.

C. Portfolio Diversity: Everstone's portfolio is strategically diversified across high-growth and defensive sectors in India and Southeast Asia. The firm’s emphasis on "mid-market, control growth, and cross-border opportunities" creates a resilient portfolio that can benefit from both domestic growth and international market access.

D. Co-investments & Partnerships: Everstone actively seeks and leverages strategic partnerships. This includes:

• Joint ventures (e.g., IndoSpace with Realterm, Eversource with Lightsource bp, DSG Consumer Partners with Deepak Shahdadpuri).
• Co-investments with other PE firms (e.g., Multiples Private Equity in Svatantra Microfin).
• Facilitating partnerships between portfolio companies (e.g., EBANX and YES Bank for cross-border commerce).
• Attracting global institutional investors like GLP to its logistics platforms.

III. Exits & Returns

Everstone Capital has a robust track record of successful exits, demonstrating its ability to generate compelling returns for its investors. The firm has returned approximately $1.2 billion through exits in the past five years, and over $2 billion including co-investments.

A. Exit Volume & Value: Everstone has executed partial or full exits from a number of companies. The firm’s focus on long-term value creation culminates in strategic exits designed to maximize returns.

B. Key Exits (Examples):

• Omega Healthcare: Everstone (alongside Goldman Sachs) sold controlling stakes in Omega Healthcare, valued at $1.8 billion, in January 2025.
• Burger King India: Partial exit via IPO in 2020.
• Rubicon Research: Exited in 2019.
• Modern Foods: Exited in 2021.
• Everstone is reportedly "scripting a $350 million exit from a decade-old India bet" (as of September 2024).

C. Return Profile (IRR & MOIC): While specific IRRs for all exits are not always disclosed, Everstone aims to deliver "dollar IRRs through rupee investments" by having a "meaningful portion of our portfolio that generates dollar revenues and rupee costs." The $2 billion in returns over the past five years signifies strong performance. The firm is recognized as "Firm of the Year in India" by Private Equity International (10 times) and PERE (3 times), reinforcing its consistent success.

D. Exit Strategies: Everstone emphasizes a disciplined approach to exits. While public markets are explored for premiums, the "base case scenario for the firm remains a secondary deal exit," allowing for complete divestment in the private market. The firm is open to leveraging various methodologies, including potential "continuation vehicles," to continue driving its DPI (Distributed Paid-In capital).

IV. Operational & Value Creation Capabilities

A. India Team & Expertise: Everstone boasts a team of over 50 dedicated and experienced private equity professionals across its offices, including key individuals like Sameer Sain (Co-Founder & CEO), Atul Kapur (Co-Founder & CIO), Avnish Mehra (Vice Chairman, Private Equity), and Puncham Mukim (Head of Private Equity, Mumbai). The team has diverse experience from multinational corporations and leading investment firms.

B. Operational Support & Governance: Everstone adopts a "hands-on operational approach to manage and support our investments." Value creation is driven through:

• Active Operational Engagement: Specializing in business transformation and value-addition across all business functions through its operating partners.
• Strategic Go-to-Market: Helping portfolio companies (e.g., Wingify) transition from product-led and founder-driven growth to institutionalized go-to-market strategies, especially for overseas scaling.
• Technology Investment: Significant technology investments to yield benefits for customers through proprietary tools, automation, and in-house expertise (e.g., Omega Healthcare's Omega Digital Platform leveraging AI, generative AI, RPA, ML, NLP).
• ESG Integration: Deeply integrating Environmental, Social, and Governance (ESG) considerations into its investment strategies and operations. Everstone has an ESG policy and an ESG Committee, aligning with global standards like TCFD and CDP. They aim to "create an organization with a long-lasting culture of governance and responsible investing, working with like-minded partners, combining financial success with positive impact."
• Job Creation & Diversity: Increasing headcount (e.g., 72,308 total headcount in CY 2021, a 47% increase from CY 2020) and promoting diversity, equity, and inclusion across the workforce.

C. Network & Ecosystem: Everstone leverages its extensive local and global network to help businesses identify and realize their true growth potential. Its partnerships across various platforms (logistics, climate impact, venture capital) create a unique ecosystem that provides strategic advantages to its portfolio companies.

V. Market Perception & Reputation

A. Industry Standing: Everstone Capital is recognized as a leader in India and Southeast Asia's private equity landscape, particularly for its mid-market, control-oriented strategy. Its consistent track record of successful exits and focus on operational value creation has earned it a strong reputation among entrepreneurs and institutional investors.

B. ESG (Environmental, Social, Governance) Integration: Everstone is a frontrunner in responsible investing in the region. Its comprehensive ESG framework, dedicated ESG team, and alignment with global climate goals (e.g., Carbon Disclosure Project signatory) highlight its commitment to positive environmental and social impact alongside financial returns.

C. Challenges & Criticisms: Like other PE firms, Everstone navigates the complexities of delivering dollar IRRs in a rupee-denominated market, which it addresses by focusing on companies with international revenues. The challenge of raising larger funds in a globally cautious fundraising environment is also a factor, though Everstone's track record helps.

VI. Competitive Landscape & Differentiators

A. Competitive Positioning: Everstone Capital differentiates itself through:

• Control-Oriented Mid-Market Focus: A distinct strategy that allows for deeper operational involvement and transformational changes.
• Cross-Border Investment Nexus: Unique expertise in identifying and scaling businesses with a strong connection between India/Southeast Asia and developed markets.
• Deep Sectoral Expertise & Operational Hands-on Approach: Leveraging in-house specialists and operating partners to drive tangible value creation.
• Commitment to Responsible Investing: Integrating ESG principles to build sustainable and resilient businesses.
• Diverse Platform Ecosystem: Leveraging its broader group's capabilities in logistics, climate impact, and venture to create synergistic opportunities.

B. Future Outlook: Everstone Capital remains highly optimistic about India's economic prospects. The firm plans to increase investments in software services amid AI-led disruption and valuation normalization, and will spend more time on manufacturing and financial services. Its strategy to focus on exits and deliver robust returns positions it well for continued growth and capital deployment in India and Southeast Asia.

VII. Overall Assessment

A. Key Strengths: Everstone Capital's primary strengths in India and Southeast Asia include its disciplined mid-market, control-oriented investment strategy, its unique focus on cross-border opportunities leveraging India's cost base for global revenue, and its robust operational value creation capabilities. The firm's deep sector expertise, active management involvement, and strong commitment to ESG integration contribute significantly to its successful track record of generating compelling returns and fostering sustainable business growth in the region.

B. Key Weaknesses/Areas for Improvement: While strong, Everstone will need to continuously adapt its strategy to the dynamic Indian market, particularly concerning valuations and the increasing competition for quality assets. Scaling its unique operational model across an ever-growing and diverse portfolio will require ongoing focus and resource allocation.

C. Overall Impact & Success in India: Everstone Capital has made a substantial impact on the private equity landscape in India and Southeast Asia. By consistently identifying and transforming mid-market businesses into regional and global champions, the firm has not only delivered strong financial returns to its investors but has also significantly contributed to job creation, economic development, and the adoption of sustainable business practices. Its strategic vision and hands-on approach solidify its position as a leading and transformative force in the region's burgeoning economies.

Reflection

Everstone Capital's journey in India and Southeast Asia exemplifies a sophisticated and multi-faceted private equity approach tailored for the unique dynamics of emerging markets. Their foundational decision to focus on "mid-market, control growth, and cross-border opportunities" is particularly insightful, allowing them to tap into scalable businesses that can leverage India's cost efficiencies for global reach. This strategy, as highlighted by Sandeep Singh regarding Wingify's predominantly US and Europe-based revenue, directly addresses the challenge of delivering "dollar IRRs through rupee investments."

The firm's commitment to a "hands-on operational approach" is a crucial differentiator. Everstone doesn't just provide capital; it actively transforms businesses. Their ability to transition companies from "product-led growth and founder-driven strategies to institutionalised go-to-market strategies" is a testament to their deep operational involvement. The impressive growth of Omega Healthcare, leveraging Everstone's expertise in technology investments including AI and RPA, showcases the tangible impact of this operational prowess.

Furthermore, Everstone's strong emphasis on responsible investing and ESG integration sets it apart. The firm's belief in "combining financial success with positive impact" is embedded in its culture and investment methodology. From creating job opportunities for lower strata of society to their partnership in Eversource Capital focusing on clean energy, Everstone demonstrates a holistic view of value creation that extends beyond financial metrics.

The firm's consistent fundraising track record, including its aim to raise its largest-ever fund ($1 billion for Fund V), indicates strong investor confidence and a bullish outlook on the region's growth story. The successful return of over $2 billion to investors in the last five years further validates their strategy and execution. Everstone's ability to consistently identify, transform, and exit businesses across diverse and critical sectors solidifies its position as a champion builder in the Indian and Southeast Asian private equity landscape, contributing significantly to regional economic development.

References:

• Everstone Capital Official Website. (Accessed June 7, 2025). About Us, Team, ESG, Approach.
• Everstone Group Official Website. (Accessed June 7, 2025). Business, Leadership.
• Communications Today. (2025, May 23). Everstone Capital eyes SaaS firms amid AI, valuation shift.
• YourStory. (2025, January 24). Everstone Capital acquires majority stake in SaaS startup Wingify for $200M.
• Wikipedia. (Accessed June 7, 2025). Everstone Capital Asia.
• IFC Disclosure. (Accessed June 7, 2025). Everstone V - IFC Disclosure.
• Outlook Business. (2024, June 19). Everstone Capital is Digging Deep in Indian Manufacturing to Find Opportunities for Investors: Vice Chairman Avnish Mehra.
• VCCircle. (2024, September 18). Everstone scripting $350 mn exit from a decade-old India bet.
• Medial. (Undated). Everstone scripting $350 mn exit from a decade-old India bet.
• Everstone Capital. (2024, July 3). Investing Today, Preserving Tomorrow (Sustainability Report CY 2023).
• Philanthropy News Digest. (2023, November 9). Everstone Plans to Raise $1 Billion for Its Largest Asia PE Fund.
• Private Equity Insights. (2023, November 10). Everstone Plans to Raise $1bn for Its Largest Asia PE Fund.
• GLP. (2018, December 12). Everstone and GLP Establish Modern Logistics Ecosystem Partnership in India.
• VCCircle. (2025, April 29). Everstone Capital set to onboard returning LP for fifth fund.