ICICI Ventures may list $1.5 bn realty fund on London bourse
| ICICI Venture Fund Management is planning to list its $1.5 billion real estate fund on the London Stock Exchange (LSE). |
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| According to sources, the fund house will be providing the flexibility in the document to list the realty fund anytime during its life span. |
| When contacted, an official spokesperson for ICICI Ventures offered no comments. |
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| At present, the fund house is in the process of preparing the documents for both its real estate and private equity (PE) funds. This is the first time that the country's largest PE fund is providing this option in its fund. |
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| “Internationally, private equities look at listing their funds. If it's a close-ended fund, investors have to wait till its maturity. However, if the listing option is built into the document, then the PE fund can exercise it at any future date,” said a senior executive of a large domestic PE fund. |
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| Also, if PE funds are looking at expanding their investor base by bringing in hedge funds and HNIs (high net worth individuals), who usually prefer to exit earlier compared to institutional investors, then listing is a good option, he added. |
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| More than half a dozen real estate funds have raised capital from London's Alternative Investment Market (AIM), which has proved to be an attractive fund-raising platform for several Indian companies. |
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| The proposed $1.5 billion real estate fund, which is intended to invest in residential and commercial projects, will raise most of its funds from the US, Europe and West Asia as it competes with majors such as Deutsche Bank AG and Morgan Stanley. |
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| Last month, Deutsche Bank launched its global alternative investment management business, RREEF Alternative Investments, in India that will invest more than $1 billion over the next three years in the growing real estate market. |
Source: Business Standard
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