Key Takeaways
- • Synergy Capital, founded by Sudhir Maheshwari after he left ArcelorMittal roughly ten years ago, has grown to a $300 million debut fund, a $607 million second fund raised in 2022, and a $1 billion third fund split between private credit and private equity.
- • The firm reports zero credit losses and zero limited partner attrition, and says it has already returned the full principal of its second fund in under four years, with remaining proceeds now representing profit and net returns in the mid-teens in dollar terms.
- • Synergy has made 33 investments and exited 19, focusing on mid-market industrial and infrastructure businesses in Asia, India and the Middle East, with typical tickets of $100 million to $200 million.
- • Fund III separates private credit from private equity so institutional investors can choose which strategy to back, with credit remaining the firm's core business.
- • Synergy plans to grow annual deployment from roughly $400-500 million toward $600-700 million, and is evaluating data centres as a pipeline opportunity.
Summary
In an interview with BW Businessworld Chairman and Editor-in-Chief Annurag Batra, Sudhir Maheshwari, Founder and Managing Partner of Synergy Capital, described the firm's approach of combining capital with operating expertise to help founder-led businesses scale. Headquartered in Dubai with teams in India and Singapore, Synergy has built its franchise around mid-market industrial and infrastructure businesses, including steel, cement, metals and mining, ports and airports, shipping, power, and increasingly digital and social infrastructure. The firm has added an M&A and investment banking practice alongside its technical and business advisory team, so business owners can seek debt, equity, advice or a sale.
Maheshwari said the firm started with a $300 million debut fund and that its second fund, raised in 2022, totalled $607 million. The third fund is $1 billion, split between private credit and private equity. Most of the firm's activity is secured credit for mid-market companies that banks often find too small, complex or urgent, paired with operational support. Maheshwari cited zero credit losses and zero limited partner attrition, and noted that Synergy does not charge commitment fees until capital is called and deployed. He said the second fund has already returned its full principal in less than four years.
Maheshwari described a turnaround of a distressed Thai steel business, which Synergy acquired by buying trade credit from creditors in Singapore and Hong Kong. Over roughly six years, the firm restructured, recapitalised and refinanced the company, took board control, and brought in a new CEO and CFO. EBITDA rose from negative to approximately $170 million by exit, and Nippon Steel acquired the asset after a competitive process involving three leading global steel companies. The firm also described a $100 million project finance facility supporting a Brazilian lithium mine, which he said entered production about three years ago. Synergy has made 33 investments, exited 19, and examines 12 to 15 deals for each one it closes. It has invested in roughly 15 countries.
On the largest transaction to date, Maheshwari said Synergy acquired a position of almost $700 million in an Indian listed company from a sovereign wealth entity, then syndicated the deal and retained $200 million. He said the firm has chosen not to focus on China because deals there are too large for a medium-sized manager, and identified India, other Asia-Pacific markets and the Middle East as core markets. He cited Asia Pacific's share of global data centre capacity, according to Cushman & Wakefield, as a reason to study data centres, while noting that large ticket sizes can limit influence. Synergy plans to add younger partners and grow annual deployment from $400-500 million toward $600-700 million.
Maheshwari said the firm started with a $300 million debut fund and that its second fund, raised in 2022, totalled $607 million. The third fund is $1 billion, split between private credit and private equity. Most of the firm's activity is secured credit for mid-market companies that banks often find too small, complex or urgent, paired with operational support. Maheshwari cited zero credit losses and zero limited partner attrition, and noted that Synergy does not charge commitment fees until capital is called and deployed. He said the second fund has already returned its full principal in less than four years.
Maheshwari described a turnaround of a distressed Thai steel business, which Synergy acquired by buying trade credit from creditors in Singapore and Hong Kong. Over roughly six years, the firm restructured, recapitalised and refinanced the company, took board control, and brought in a new CEO and CFO. EBITDA rose from negative to approximately $170 million by exit, and Nippon Steel acquired the asset after a competitive process involving three leading global steel companies. The firm also described a $100 million project finance facility supporting a Brazilian lithium mine, which he said entered production about three years ago. Synergy has made 33 investments, exited 19, and examines 12 to 15 deals for each one it closes. It has invested in roughly 15 countries.
On the largest transaction to date, Maheshwari said Synergy acquired a position of almost $700 million in an Indian listed company from a sovereign wealth entity, then syndicated the deal and retained $200 million. He said the firm has chosen not to focus on China because deals there are too large for a medium-sized manager, and identified India, other Asia-Pacific markets and the Middle East as core markets. He cited Asia Pacific's share of global data centre capacity, according to Cushman & Wakefield, as a reason to study data centres, while noting that large ticket sizes can limit influence. Synergy plans to add younger partners and grow annual deployment from $400-500 million toward $600-700 million.
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