IL&FS targets $500m India infrastructure fund

The fund is expecting a first close during the current financial year, with a final close within the following 12 months, CEO Archana Hingorani told Livemint. IIML began raising the fund last year, and has seen rising interest from LPs in such markets as China, Japan, South Korea and Australia.

The GP will manage risk by pursuing greenfield and brownfield opportunities, and will offer co-investment opportunities to participating LPs. It will also consider investments in waste management, ports and logistics assets.

IIML's India infrastructure interests include Ramky Enviro Engineers, to which it committed $42.8 million in 2009 through the Standard Chartered IL&FS Asia Infrastructure Growth Fund and Tara India Fund III. The firm recently divested its last natural gas distribution asset through the sale of Maharashtra Natural Gas last year, securing a cash multiple of 4.1x on its original $4 million investment in 2009.

IIML is also currently raising its fourth India fund, Tara India Fund IV, which launched in 2011 and reported a first close of $40 million last year, after revising its target downward from $300 million to $75 million. The fund had originally been expected to close at the end of 2015, but IIML pushed back the deadline to 2016. It will seek growth capital investments primarily in the manufacturing, retail and logistics sectors.

In its most recent annual report, IIML 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.

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• Topics
• South Asia
• Infrastructure
• Infrastructure
• Fundraising
• India
• IL&FS Investment Managers