India's IL&FS pushes back deadline on latest fund

The final close had originally been expected at the end of 2015; in a release, the firm attributed the delay to a difficult fundraising environment. IIML has been raising the fund while pursuing a number of other objectives, such as purchasing an infrastructure lending business and raising new infrastructure and real estate funds. A first close on those vehicles is expected by the end of this year.

The fund, Tara India Fund IV, launched in 2011 with a target of $300 million, though the target was later reduced to $75 million. IIML reported a first close of $40 million last year. The vehicle is sector agnostic, but will seek growth capital investments primarily in the manufacturing, retail and logistics sectors.

At the same time, IIML announced its latest annual results. The firm recorded revenue of INR1.9 billion for the year ended March 2016, down from INR2.1 billion the year before. Net profit also dropped over the same period from INR730 million to INR561 million. Recently IIML has focused on divesting its existing funds; it reported exits totaling INR22 billion for the most recent year.

IIML has also agreed to buy a 49% stake held by Japan's Orix in the firm's subsidiary IL&FS Asian Infrastructure Managers (IAIML) for INR27.8 million ($417,000). Currently IL&FS holds a 51% stake in IAIML, a joint venture set up by the two firms in 2006 to manage the Pan-Asia Project Development Fund. In a filing IIML said that its board of directors had approved the transaction.

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