Rabo India Puts $100 M Fund Plan On Backburner

Rabo India Finance has put its plan to launch a $100 million private equity fund on hold for the time being due to dismal market conditions.

The company is currently waiting for the "right time" to launch the equity fund in India. Rabo was planning to unveil the fund in April-May this year as part of its plans to finance domestic firms in the pre-initial public offering stage.

"Till the recovery of the economy, the launch will not happen though we are confident about an early revival. However, we have no plans to drop the venture," said Rana Kapoor, managing director of Rabo India. The fund was primarily to help new economy companies.

It is learnt that a team of officials from Rabo India is visiting a few foreign countries to initiate dialogues with investors for the fund. Rabobank is said to have committed a large chunk of the $100 million fund.

Rabo India was looking at forging strategic alliances with domestic private equity funds. As part of forming alliances, Rabo has plans to initiate talks with domestic financial institutions and government co-operatives, and other agencies to become a part of the fund.

The main aim of the company was to assist firms with a strong technical background and sound business model. Rabo wanted to fund companies in their second and third round of financing.

In addition, it has plans to assist these companies for their overseas ventures. It may offer its network of alliances to the companies in foreign the markets.

The target segment comprises firms from the telecom, media, technology, agricultural, biotech and food businesses. Rabo has earmarked around $75 million for assisting the overseas expansion plans of these companies via their international subsidiaries, while $25 million will go for domestic ventures.