LIC Housing Finance (LICHFL), a subsidiary of Life Insurance Corporation of India (LIC) has launched a Rs 500 crore venture capital fund called LICHFL Urban Development Fund to make investments in housing and infrastructure projects. LIC Housing Finance the main sponsor and LIC the co-sponsor have both invested Rs 50 crore each while another Rs 100 crore has been raised in aggregate from high net worth individuals, direct retail investors and institutional investors,” said VK Sharma, CEO at LICHFL.
“The targets is to raise the remaining Rs 300 crore in the next nine months,” DK Mehrotra, acting chairman at LIC said.The fund would be managed by LIC Housing Finance’s associate (LICHFL AMC).
Sharma said the company has been investing in other similar realty-focused funds earlier too and the decision to enter by themselves is prompted by the high returns earned in the past. “Looking at the increasing need for equity for successful financial closure of projects, the LIC Group has ventured into the private equity space with its maiden offering,” said AK Sharma, CEO of LICHFL AMC.
Source: My Digital FC