Thomas Weisel brings in PE fund of funds

After the steady flow of funds into Indian private equity over the last 12-18 months, a fund is being launched that will invest in other private equity funds in the country. Essentially, this will be the first of its kind "" a private equity fund of funds.

The US-based Thomas Weisel International (TWI), which set up its India office recently, will close a $200-250 million private equity fund of funds in the coming weeks.

The Thomas Weisel Partners India Opportunity Fund will allow its investors to diversify their money in a variety of sectors through investments in infrastructure, technology, venture capital and buy-out funds.

Venture capital funds incubate new ventures while mid-stage and late-stage funds put in money at later stages to help companies expand.

"The main attraction of a private equity fund of funds is that it allows investors to diversify across sectors and asset classes such as venture capital, late-stage private equity and real estate," said TWI Director Praveen Chakravarty.

The new fund has already committed $15 million to IDFC's Infrastructure Fund. Since the India Opportunities Fund is yet to be closed, the investment has been done from Thomas Weisel's balance sheet for the time being.

TWI had recently hired Sreenivasulu Vudayagiri as director and head of asset management to lead TWI's India-focused private equity fund of funds.