IL&FS looks to raise $900m across three funds

IIML, the private equity unit of Infrastructure Leasing and Financial Services, currently has three vehicles in the market: growth equity fund Tara India Fund IV, a rental yield fund, and PIPE fund. Each vehicle is targeting $250-300 million. It was previously reported that Tara India Fund IV would focus primarily on the manufacturing, retail and logistics sectors. Its predecessor was the $225 million Tara India Fund III, raised in 2007.

Archana Hingorani, CEO and executive director of the private equity firm, told Livemint that it is likely to take 12-18 months to raise a fund compared to 9-12 months previously. She added that IIML's merger earlier this year with real estate private equity specialist Saffron Assets Advisors might help reduce the fund-raising cycle.

Although most funds in India allocate 15-20% of their corpus in public equities, few private equity firms operate dedicated PIPE vehicles. Examples include WestBridge Capital, which was revived earlier this year after its four founding partners left Sequoia Capital India Advisors, and Nalanda Capital, which was set up by Pulak Prasad, former managing director of Warburg Pincus India.

In the last nine months, IIML has made five investments across the hospitality, IT, logistics and consumer sectors. These include Jyothy Fabricare Services (JFS), a washing and dry cleaning manager that services both retail and institutional clients, and agri-warehousing firm JICS Logistic. IIML has also exited four companies, including Continental Warehousing Corp., which was sold to Warburg Pincus for $100 million.

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• Topics
• Fundraising
• South Asia
• Real estate
• Infrastructure
• IL&FS Investment Managers