IDFC's PE arm raises USD 900-mn infra fund

IDFC Alternatives, the private equity arm of non-banking lender IDFC, today said it has raised USD 900 million in commitments for a fund dedicated to invest in infrastructure projects.
The 'India Infrastructure Fund II' is second such fund by the company and the final closure was achieved after commitments from institutional investors based in North America, Europe and West Asia, it said in a statement.
Parent IDFC has committed 90 million for the fund while the rest is from global investors, it said.
The company said its USD 927 million first fund, raised from domestic and global institutional investors, has been invested in assets across the country.

"The fund will continue with a similar investment strategy of investing in core infrastructure assets in the country covering both under construction," IDFC Alternatives' partner Aditya Aggarwal said.
Managing partner and Chief Executive, MK Sinha alluded to challenges in the fund raising, saying they had to deal with a "difficult economic and financial conditions that prevailed during majority of fund-raising period."
Some of the commitments are from existing investors, who have upped their investments, while there some new global institutional investors have also come in, he said.
According to an estimate of the now-disbanded plan panel, the country will be needing USD 1 trillion in infrastructure investments over the 12th Plan ending 2017.