CDC commits $200m to IDFC Infrastructure Fund II

The re-up from CDC helped IIF2 reach a first close of $644 million in September and the IDFC team is aiming to reach its $1 billion overall target by the end of the year. CDC committed $100 million to IDFC's first India Infrastructure Fund in 2008.

IIF2 will invest in core infrastructure sectors, including, roads, ports, airports and power. IDFC has put in $64 million with global institutional investors accounting for the balance of $580 million. LPs have also set aside an additional capital for co-investment opportunities.

M.K. Sinha, managing partner and CEO at IDFC Alternatives told AVCJ earlier this year that IIF2 will look at assets that are operational. "At one level the current opportunity is better because it suits our needs as a financial investor much better - it's lower risk, more certain returns than what it was back in 2008," he said.

CDC has over $680 million invested and $1.1 billion committed to Indian private equity funds. Around 28% of CDC's Indian investment has been in infrastructure.

CDC CEO Diana Noble told The Economic Times that infrastructure in India is a huge opportunity for the group.

"There was a PE bubble that had to burst and I personally believe that the post-bubble period is a good time to invest. As markets return to normality, I think the returns will revert to a reasonable equilibrium. We are not looking at 15%-plus returns, but somewhere in the 10-12% range, net of all costs," she explained.

According to LiveMint, TPG Capital is set to buy a majority stake in Karaikal Port, which is part of the first IDFC India Infrastructure Fund's portfolio. TPG has entered into an exclusivity agreement and will invest at least INR10 billion ($159.3 million) to acquire stake from existing investors and promoters.

PE investors, including IDFC, Standard Chartered Private Equity, Jacob Ballas and Ascent Capital Advisors hold about 49% of Karaikal Port.

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• Topics
• South Asia
• Infrastructure
• Infrastructure
• India
• Infrastructure
• IDFC Private Equity
• TPG Capital
• CDC Group