Milestone Group, India's largest independent alternate assets fund house with more than Rs24bn under management, has launched India Build-Out Fund-I (IBF-I). Milestone plans to raise Rs6bn with a greenshoe option of Rs2bn for IBF-I.
IBF-I is a five year close ended fund, open for subscription by domestic investors, with an option of two extensions of one year each. The minimum investment applicable for individual investors is Rs2.5mn and Rs10mn for institutional investors. The fund is targeting a return of 30% compounded, annualized IRR with a hurdle rate of 12% compounded, annualized IRR.
Rajesh Singhal, earlier with Intel Capital, has joined Milestone Private Equity as Managing Partner.
“IBF-I plans to invest majorly in education service providers focusing on K-12, Finishing schools, test preparations, colleges, etc. Besides, IBF-I also plans to invest in companies involved in domestic consumption and ancillaries physical infrastructure space,” said Ved Prakash Arya, CEO and MD of Milestone Capital.
“There is a strong need for mentor capital vs. venture capital in India. Milestone's active management expertise, as demonstrated in earlier funds, will be a key value enhancer for investee companies for IBF-I too,” Arya said.
“Our last three domestic funds have seen a strong appetite from individual investors. More than 25% of funds have come from investors from metros and even remote geographies within India. We are confident that IBF-I too would see a significant response for individual investors, in addition to institutional investors,” Arya said.
Source: India Infoline