You are here: Home » Finance » News » Others
Business Standard

ICICI Venture raises $700 mn in 2012

Closes $100-mn realty fund raising for infrastructure, special situation funds in full swing hopeful of turnaround in sentiment

Reghu Balakrishnan  |  Mumbai 

ICICI Venture (I-Ven), one of India’s largest private equity entities, was able to raise funds faster last year.

In 2012, it successfully closed a $100-million (Rs500 crore) second real estate fund, the India Advantage Fund Real Estate Series 2. Through its real estate and other funds, it raised $700 million last year.

I-Ven made two investments from the new realty fund. One was in a group housing project in the National Capital Region (NCR) region, being developed by Advance India Projects Ltd. The other was in a Mumbai-based, high-end residential project, of Ahuja Developers. It is learnt about Rs100 crore was invested in both. The real estate fund will primarily focus in projects in the bigger cities — Mumbai, NCR, Bangalore, Chennai, Hyderabad, Kolkata, Pune.



I-Ven also manages the $550-million India Advantage Fund Real Estate Series 1. This fund is fully committed across 13 investments.

Year 2012 witnessed a better fund-raising scene in the real estate sector. As many as 14 funds raised a total of about $1 billion (Rs5,000 crore) against $900 million raised through nine funds in 2011 and a mere $200 million raised in 2010 through four funds.

According to sources in the know, the company has commitment worth $275 million for its infrastructure fund and is likely to soon announce the first closure. The $500-million India Infrastructure Advantage Fund was launched in July 2010. It proposes to invest in various sub-sectors such as power, roads, ports, airports, railways, telecom and urban & social infrastructure.

Refusing to disclose the figures, Vishakha Mulye, chief executive officer, said: “We have raised new commitments in 2012 across our offerings, a satisfactory outcome, given the weakness in the global fund-raising environment. It has been an extremely challenging marketing process due to the negative sentiment around India. One is hopeful of a turnaround in the global sentiment among LPs (limited partners, or investors) on India in the new year, although one is yet to see concrete signs of it.”

AION, a special situation fund jointly owned by ICICI Venture and Apollo Global, raised $325 million last year. The $750-million fund, with focus on investments in distressed assets, was launched in 2011. A recent report by Bain & Company said, “Fund-raising has become increasingly difficult. LPs say they have become far more selective, evaluating re-ups and managing their investments more closely than ever to ensure capital protection, better returns and appropriate liquidity.”

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, January 10 2013. 00:52 IST
RECOMMENDED FOR YOU
.