ICICI Venture infra fund to raise Rs 1,500 cr by April
ICICI Venture (I-Ven), the largest private equity (PE) player in India, is looking to achieve the first closure of its infrastructure fund by raising around Rs 1,500 crore (over $300 million) by April. It has already received Rs 456 crore ($100 million) from domestic investors such as Life Insurance Corporation (LIC) of India. The fund is targeting a corpus of $750 million.
According to officials, talks with offshore limited partners (LPs or investors) are on and another $200 million is expected by March-April. The fund was launched in July 2010.
“A large number of domestic LPs, including banks and insurance companies, are in various stages of approving investments. We have received positive feedback from many international LPs across Europe, North America and Asia who understand and wish to participate in the ongoing infrastructure build-up in India as long-term investors,” said an official close to the development.
In November, Business Standard had reported that ICICI Venture was in talks with some Japanese investors to raise money for its infrastructure fund. “Talks with Japanese firms are also in progress, but those funds will be added in the second closure,” he added.
ICICI Venture had roped in Manikkan Sangameswaran, former managing director and head of infrastructure at Babcock & Brown India, to co-head the infrastructure fund along with Mohit Batra and Partha Dey. The latter two were with the infrastructure financing business of ICICI Bank. Sandeep Malhotra, another senior official from I-Ven, recently joined the team.
Meanwhile, Multiples Alternate Asset Management, a PE firm started by former ICICI Venture CEO Renuka Ramnath, is also likely to close its $450-million fund-raising by March-April.
Last month, Business Standard had reported that Multiples Alternate received Rs 325 crore ($70 million) from the Public Institution for Social Security (PIFSS), a pension fund run by the government of Kuwait. With this, Multiples has achieved a corpus of more than $425 million.
However, other PE firms launched last year are yet to start fund-raising. Exponentia Capital, a $400-million fund launched by P R Srinivasan, former managing director & India head of Citigroup Venture Capital International, and Arka Capital, started by Rajesh Khanna, former India head for Warburg Pincus, are yet to start the process.
However, M Cap Fund Advisors, started by Subbu Subramaniam, former partner with Baring Private Equity Partners, is in the fund-raising stage.
Also, Ajay Relan, who left Citigroup Venture Capital International to form CX partners, has been able to raise $515 million. ICICI venture officials refused to comment on fundraising.