India Infoline buys majority stake in PE firm India Alternatives
IIFL Wealth Management, a listed unit of India Infoline (IIFL) Group which is in turn backed by The Carlyle Group, has acquired a majority stake in PE firm India Alternatives Investment Advisors.
According to a statement, IIFL has also made a contribution to the firm's India Alternatives Private Equity (India Alt) Fund, which has received an initial INR2.3 billion ($38 million) in capital and focuses mid-stage growth capital deals.
India Alternatives was founded by Shivani Bhasin Sachdeva, who will continue to lead the unit as managing director and CEO under IIFL.
"Association with IIFL Group is synergistic and will strengthen the India Alt platform; especially in fund raising, deal sourcing and exit management capabilities," said Bhasin Sachdeva. She added that India Alternatives is currently looking at deals in the consumer and consumables, healthcare and pharmaceuticals sectors.
The fund has made three investments to date. Its first deal came in 2010 when it put INR280 million into Visual Effects, a business that operates under the banner of Frameboxx-IIFM, offering media and finance-focused education services.
India Alt went on to back Ideacount Education, a similar business that provides media and entertainment training and related services. Its last deal was in 2012 and involved a INR200 million investment in underwear manufacturer Gokaldas Intimatewear.
IIFL Wealth Management was set up six years ago and has total assets of around INR550 billion. Carlyle acquired a 9% stake in IIFL, the flagship company of IIFL Group, through a PIPE deal in October 2011.
"This acquisition will enable IIFL Group to widen its presence in the PE industry and provide an added offering under the asset management platform," said Nirmal Jain, chairman of IIFL Group.
This not the first case of consolidation in India's private equity market.
Last year Quadria Capital acquired Milestone Religare, which managed an education and healthcare-focused PE fund. Milestone Capital - the joint owner of the fund alongside Religare Enterprises - had been looking for a buyer ever since its founder, Ved Prakash Arya, died in an accident in 2011.
Before that, in 2010, IL&FS Investment Managers bought real estate-focused firm Saffron Assets Advisors. The deal boosted IL&FS' total assets under management by $400 million, making it the largest PE player in the country at the time.
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