IL&FS PE arm plans exits worth Rs 500 cr in H2

IL&FS Investment Managers, the private equity (PE) arm of the IL&FS Group, plans to garner about Rs 500 crore in the third and fourth quarters of FY15 by exiting from its investments, the company's CEO Archana Hingorani said in an analyst call.

The PE fund is in discussions with its investee companies for exits.

In the first half (April-September) of FY15, the company had offloaded stake in investee companies for Rs 484 crore.

The consolidated revenues for the second quarter of FY15 stood at Rs 48.6 crore, against Rs 50 crore in the first quarter. The net profits were slightly higher at Rs 15.33 crore in the second quarter from Rs 15.33 in the quarter June ended.

According to Hingorani, business is significantly impacted by how the economy is doing. It impacts investments and also triggers whether or not fresh capital is being provided to the country.

The stock markets have been quite buoyant and a fair amount of capital has come in. There has been a lot of interest in large transactions in private equity, she said.

IL&FS Investment Managers booked exits worth Rs 177 crore during the second quarter, accumulating Rs 484 crore for the first half of FY15.

The assets under management stood at $1.6 billion. Most of the exits have been profits with very little of principal going back, which has allowed the company to maintain the revenue line, Hingorani noted.

Referring to fund-raising, she said Tara Fund has raised $60 million from sovereign funds and government-related entities that are looking for regulatory approvals.

Another fund of IL&FS Managers is The Middle East Infrastructure Fund. "We have principal commitments of $50 million, surrounded by a co-investment model in which we are trying to invest in two transactions," she added.