Investcorp marks first direct investment in India with IDFC acquisition

The acquisition is expected to close on Thursday.

Investcorp, manager of alternative investment products, on Wednesday announced the launch of its operations in India with the completion of its first deal. It has acquired private equity and real estate investment management businesses of IDFC Alternatives, a subsidiary of IDFC. Combined assets under management (AUM) of IDFC's private equity and real estate businesses in India is approximately $430 million.

The acquisition, which has already received the required regulatory approvals from the Securities and Exchange Board of India, is expected to close on Thursday. 

"The transaction will mark Investcorp's entry into India, and is in line with the firm's long-term strategy of expanding its investment footprint and client franchise globally," said the company.

The acquisition of IDFC Alternatives' PE and real estate businesses, along with the existing team of around 20 people, will provide Investcorp with immediate access to the large and expanding real estate market in the country. 

"Our first direct investment in the Indian market is a major milestone for our business, which also marks our focused expansion into Asia," said Mohammed Al Ardhi, Executive Chairman of Investcorp. The acquisition will be instrumental in our plans to grow our investments in the country as part of our wider Asia strategy, he said.

"We are entering the Indian market at an important time in its growth trajectory," said Rishi Kapoor, Co-Chief Executive Officer of Investcorp.

The Private Equity business, led by Girish Nadkarni and Gaurav Sharma, currently has two active funds. The team focuses on investing in grassroots consumption driven businesses within the healthcare, consumer products, financial services, food and agriculture, media and telecom sectors. The Real Estate business, led by Ritesh Vohra, also currently has two active funds.  The current funds provide structured senior credit within the residential real estate sector with a focus on projects in Mumbai, Bangalore, Hyderabad, Chennai and the National Capital Region.