India's IL&FS closes latest fund at $60m
IL&FS Investment Managers (IIML), the private equity arm of India's Infrastructure Leasing and Financial Services, has reached a final close of $60 million on its latest growth fund.
The closing amount represents a substantial reduction from the fund's original target size of $300 million at the time of its launch in 2011. IIML had already cut the target size to $75 million and delayed the original deadline of late 2015, citing a difficult fundraising environment. The GP reported a first close of $40 million in early 2015.
Tara IV is sector agnostic, but seeks growth capital investments primarily in manufacturing, retail and logistics. It follows IIML's Tara India Fund III, which launched in 2006 as the Leverage India Fund II and closed at $225 million in 2011. Tara III made 11 investments in companies including Ramky Enviro Engineers, GSS America Infotech and Quickjet Cargo Airlines. AVCJ Research shows only one investment from Tara IV so far: a INR1 billion ($22 million) commitment to laundry service Jyothy Fabricare Services in 2011.
In its filing announcing the closing of the fund, IIML also disclosed the formation of a joint venture with the government of Andhra Pradesh that will invest in urban infrastructure in the state. IIML will contribute INR102 million for a 51% stake in the venture, called Andhra Pradesh Urban Infrastructure Asset Management (APUIAML), with the government investing INR98 million. APUIAML will help to manage the Andhra Pradesh Urban Development Fund, which will deploy capital raised from private sources on infrastructure projects.
In addition, IIML announced that it has received regulatory approval to acquire an 87% stake in IL&FS Infra Asset Management and 100% of IL&FS AMC Trustee from its parent. The two entities make up the infrastructure debt fund business of IL&FS. The firm had earlier indicated that it would pay INR210 million for the stakes.
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