One of the leading private equity firms operating in India is set to hold a first close after raising nearly $300m for a special situations fund to take minority stakes in public companies. Its approach has generated strong returns, but has attracted criticism from investors, who believe it gives the private equity firm too little control over the target company.

Samena Capital said it expects to announce a first close of $300m on the Special Situations II fund later this month ahead of a final close of $700m within the next 18 months. The fund is more than triple the size of the firm's maiden effort which raised $200m in 2008.