Khaleej Finance and Investment (KFI) and its regional partners have announced the success of its Indian Private Equity Fund.
They said the fund has attracted interest from many institutional and individual investors, both regionally and internationally.
The firm revealed ICICI Bank Limited, India's second largest bank, has been named financing partner for the fund.
KFI's fund was arranged in co-operation with a leading semi-governmental institution and was underwritten by another investment company.
KFI wealth management director Talal Kaiksow said that the Sharia-compliant $200 million fund offers investors in the GCC a unique opportunity to benefit from the dynamism of the Indian economy and the high growth levels it is maintaining.
KFI's interest in India began as part of a study initiated by its research department, which looked into various global markets and conducted a comprehensive analysis of the Indian as well as other Asian markets.
The results highlighted India's potential in terms of its investment opportunities and further growth potential. A resulting foreign direct investment initiative was taken along with a consortium of KFI's shareholding institutions in the Indian market.
The Indian Private Equity Fund was structured to allow for KFI's investors' entrance in the Indian private equity market.
KFI has revealed its arrangements for ICICI Bank limited to be a financing partner for the fund, ICICI Securities – a subsidiary of ICICI Bank, its private equity adviser, and ICICI Home Finance Company – another ICICI Bank subsidiary – its real estate adviser.
The fund is allocated to two main portfolios – 50 per cent real estate and development and 50pc private equity.
The minimum subscriptions were $250,000 for individuals and $1m for institutions and it has a target Internal Rate of Return in excess of 25pc.
The fund will invest in the sugar, iron and steel, cement, pharmaceutical and biotech, information technology and telecommunications sectors.
These sectors were chosen because of fast growth levels that are expected to be maintained in the coming years.
Source : Gulf Daily