Ex-Baring partner to raise $250 mn

Corpus may touch $500 mn if infrastructure included

N ‘Subbu’ Subramaniam, who recently quit as partner with Baring Private Equity Partners India, is understood to be looking at raising at least a $250 million private equity fund in India.

According to private equity industry sources, Subramaniam is scouting for an anchor investor in the US and is understood to have zeroed in on two large funds to anchor.

Confirming plans for the new fund, Subramaniam said that discussions are on to raise a fund and the process will be kickstarted early next year. “I am planning a fund of at least $250 million and the corpus may increase to $500 million once the investment strategy is finalised and will depend on infrastructure being a part of that strategy,” he said.

Private equity industry sources also detail that Subramaniam is also being sought after to lead the Indian operations of a large European private equity fund which is planning to enter India soon.

Subramaniam, a chartered and cost accountant, quit Baring in July 2009 after being with the fund since its inception 12 years ago.

Baring manages $750 million in all including a $540 million fund which the firm raised last year. Notable investments from Baring include Mphasis, Jyothy Laboratories, JRG Securities and Integra Software besides others.

The private equity fund raising scenario in India has been a bit muted this year. According to Venture Intelligence, four India-focussed funds have raised close to $1.2 billion during 2009 and another close to $4.4 billion is in the process of being raised by nine funds.