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Ashmore to acquire PTC asset mgmt firm

Jyoti Mukul  |  New Delhi 

Ashmore, the London-based emerging markets asset manager, will hold majority 60 per cent equity in the asset management company for India Energy Infrastructure Fund. PTC India Ltd, a joint venture of power sector primarily into energy trading, will hold the remaining 40 per cent.

The two launched the close-ended fund in May to provide equity financing to energy projects, including those related to generation, transmission, distribution, fuel extraction and fuel transport infrastructure.

“Ashmore will hold 60 per cent in the company and PTC will hold the remaining 40 per cent but there is a provision for diluting proportionate stake in case there were more partners,” PTC India Chairman and Managing Director T N Thakur told Business Standard.

He said the provision for dilution has been kept since some of the participants in the fund might like to pick equity in the asset management company. The two partners expect to keep the fund size at $750 million to $1 billion. “The first close would be for around $250-300 million. We expect that to happen by the end of 2010-11,” said Thakur.

The Indian power market needs funding of about $600 billion over a seven-year period, which provides significant opportunity for private equity to lead the initial investments. The fund’s portfolio would contain a mix of holding and asset It would offer a target return of 20 per cent, with 10 years maturity, and is aimed at local and international investors.

Capital from international investors would be channeled into the local fund through a registered feeder fund. PTC was floated in 1999 as a trading company and later diversified into a consultancy and a financier.

Thakur said the British partner was in talks with six to seven players for participating in the funds but a list of participants is yet not finalised. Among the challenges being faced in tying up the loose ends, was the existence of several private equity funds in the country though there is no fund dedicated to the power sector. But Thakur said the company had the advantage of “deeper and multiple relationship with power developers.”

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First Published: Sat, November 13 2010. 01:21 IST