ICICI Venture, the private equity arm of ICICI Bank, is planning three fund offerings as part of its plans to raise its assets under management to $10 billion by 2010 from $2 billion now.
It plans to come out with a $2-billion real estate fund, a diversified equity fund valued at around $1 billion and another $500-million mezzanine fund. Among these, the real estate fund will be one of the largest in the country.
Besides these plans, an entry into new asset classes such as hedge funds is also on the cards. ICICI Venture, which has built its portfolio across segments such as pharmaceuticals, media, information technology and logistics, wants to take a greater exposure in infrastructure in this fiscal.
It is also looking at the prospect of setting up a hedge fund. Sources said that at a recent presentation before analysts, such a possibility was hinted upon.
Though the exact structure of the proposed hedge fund and its investment targets are not known, it can be a first by an Indian entity.
However, sources at ICICI Venture said, developments on the hedge fund were at a preliminary stage. “It’s too early to talk about the hedge fund as it is only at a conceptualisation stage. At least, the fund will not come out in the immediate future. It’s still some time away,” the sources added.
Among existing funds, the private equity firm plans to exit most of its investments in the India Advantage Fund Series 1, in which around $245 million was raised in 2003. However, it will continue to invest in the other funds — India Advantage Fund Series 2, Real Estate Series 1 and a mezzanine fund.
Source: The Telegraph