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Actis to launch $1 bn India fund
| Private equity fund Actis Advisors is planning to launch a $3-4 billion private equity fund globally, with $1 billion allocation for India. |
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| Actis which has been investing in PE in India for more than a decade is also planning its first India dedicated real estate fund with a corpus of $250-300 million. |
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| Sources said the fund raising process for the private equity and real estate funds has already begun. The firm is planning to raise funds from institutional investors in the US, Europe and West Asia. |
| Both the funds are likely to be registered in Mauritius. For the real estate fund, the first close of $100 million has already been achieved. |
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| “We are evaluating few deals in the real estate space,” the sources said. J M Trivedi, the managing director of Actis Advisors, could not be reached for comments. |
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| The average deal size of investments is likely to be $30-50 million and the private equity fund will be investing across all sectors. |
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| The real estate fund will have a 10-year life span and would invest in residential and commercial properties, hospitality sector, etc. |
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| “We would like to enter at the SPV (special purpose vehicle) level as that is where we can normally add value,” the sources said. |
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| The real estate fund team has been put in place already and is headed by Chanakya Chakravarti, the ex-joint managing director of Cushman & Wakefield. |
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| In India, Actis has made investments in excess of $700 million, including investments in its previous avatar, CDC Capital. The PE fund usually invests in growth capital as well as buyouts. For growth capital deals, they chalk out the growth sectors first and then the targets. |
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| Actis has a research team of 18 people in three offices. It is a leading private equity investor in emerging markets and has $3.5 billion under management. |
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| Stagnancy in returns from property assets in western markets and better returns from the Indian real estate sector have resulted in many international investors, including Goldman Sachs, Blackstone, Citigroup, Morgan Stanley, entering the Indian real estate sector. |
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| Indian entities, including ICICI, HDFC and Kotak, have also launched dedicated property funds. |
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| According to industry estimates, private equity funds have committed to investing as much as $2.5 to $3 billion in Indian realty this year. |
Source: Business Standard
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