Arun Korati to head IIML Asset Advisors

Korati's initial brief would be to find exits and bring in returns for investments worth about Rs 1,000 crore

In one of the high-profile movements in the Indian private equity (PE) sector, Arun Korati, CEO of Axis Private Equity Limited, a fully-owned subsidiary of Axis Bank, has put in his papers to join IL&FS Investment Managers Limited (IIML), the private equity arm of the IL&FS group.

While Axis Bank is yet to start finding a replacement for Korati, sources said Axis PE’s Managing Partner Anuj Kumar will head the business in the absence of Korati. According to sources, Korati is due to join the IL&FS group on November 1 as senior managing partner, IIML Asset Advisors.

Formerly known as Saffron Asset Advisors (SAAPL), IIML Asset Advisors was acquired by IL&FS in 2010. After the buyout, IL&FS became one of the largest Indian PE players, with assets under management (AUM) of $3.2 billion.

According to sources, Korati’s initial assignment will be to find exits and bring returns for the investments worth about Rs 1,000 crore made by Saffron Advisors in India.

When contacted, Korati refused to comment. Email questionnaires sent to Axis Bank and IIML did not elicit any response.

Korati, who joined Axis PE in June 2007, took over as the CEO in March 2011 following the exit of the then managing director and CEO, Alok Gupta.

Under Korati’s leadership, Axis PE returned 90 per cent of the investments through three exits. The last exit was in June 2012, when the PE firm sold its stake in Hyderabad-based Shalivahana Green Energy Limited to AMP Capital.

In September 2011, Axis PE exited Vishwa Infrastructure by selling its stake to Olympus Capital. So far, Axis PE has made five investments.