UTI Ventures plans to raise $450 mn fund

The fund will open by July and close in 3-6 months. The company would tap institutional investors in the US, Europe and Asia. Endowment funds, pension funds and high-end sovereign wealth funds would contribute in the fund-raising exercise, according to sources.

The fund will finance deals ranging between $15 and $20 million. It would invest across sectors, with a major focus on infrastructure, retail and media. The venture capital arm of India's third largest AMC has initiated talks with prospective companies for investment purposes.

In one of the biggest exits by a venture capital firm in India, UTI Ventures made 50 times its investment by selling 35.5 per cent stake in Excelsoft Technologies for Rs 125 crore to DE Shaw, a hedge fund. UTI Ventures had invested Rs 2.5 crore in 2001 in the Mysore-based company.

UTI Ventures has investments in sectors as varied as urban infrastructure services, apparel retail and alternative energy infrastructure. Some of its portfolio companies include Koutons Retail, Laqshya Media, Primus Retail, Shriram EPC and Subex Azure.

According to industry estimates, the PE players are raising more than $12 billion this year. The figure however does not include real estate funds. The recent turbulence in global markets has reduced the appetite of investors, making it tough for PE firms to raise funds.