ICICI Venture, the largest homegrown private equity firm, is launching a separate $3-billion infrastructure fund to invest in road, port and power projects across the country, CEO and MD Renuka Ramnath said. ICICI Venture will raise the money from domestic and institutional investors some time this year.
The infrastructure fund will be the firm’s third-biggest fund launch and will help it achieve a target of $10 billion assets under management by 2010. A $2-billion real estate fund and a private equity fund of similar size are also being planned.
“We are looking at multiple pools of capital to satisfy the different needs of the economy. Through this, we hope to identify the best investment opportunities for capable entrepreneurs,” Ms Ramnath said.
She added that a separate fund for infrastructure was necessary as the profile and needs of investors were different.
The infrastructure fund has come to I-Venture after ICICI Bank, the parent, decided not to proceed with its own plans. Credit Suisse First Boston is advising I-Venture on the fund raising plan.
Ms Ramnath said the fund will invest in prominent segments of infrastructure such as roads, ports, power. The fund is no stranger to infrastructure projects. It recently agreed to invest $800 million Jaypee Infratech, which is implementing the Taj Expressway, a 165-km road from Noida to Agra in Uttar Pradesh.
India’s infrastructure needs are growing every year as a booming economy requires heavy investments in key services. ICICI Venture will compete with several other players by raising money for infrastructure investment.
One of them is the government, which has been toying with the idea of floating a special purpose vehicle that will raise money both in India and overseas for infrastructure projects.
ICICI Venture is hoping to complete the fund raising plan over the next three to six months. The real estate fund that is being raised separately will also be completed this year. The firm proposes to list this real estate fund in the overseas market.
Source: Economic Times