India's IIML raises infrastructure fund target to $1b

The fund was launched in 2015 with a view to raising $500 million. IIML decided to raise the target on the back of strong interest from LPs, particularly South Korean and Japanese pension funds, which make up the majority of commitments received so far as reported by The Economic Times and confirmed by AVCJ.

The fund will seek majority and minority stakes in greenfield and brownfield opportunities, looking for buyouts of mature, operational projects and taking minority stakes in earlier-stage projects. IIML plans to offer co-investment opportunities to interested LPs, though the firm expects appetite for co-investment to be lower now that it has raised its target.

A first close of the fund is expected within the next few months. Along with Japanese and Korean pension funds, IIML is also actively seeking commitments from LPs in Australia.

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 divested its last natural gas distribution asset through the sale of Maharashtra Natural Gas in 2015, securing a cash multiple of 4.1x on its original $4 million investment in 2009.

IIML is also investing its fourth private equity fund, Tara India IV, which launched in 2011 and closed last year at $60 million. The fund is sector agnostic, but seeks growth capital investments primarily in manufacturing, retail, and logistics.

In its most recent annual report, IIML recorded revenue of INR1.9 billion ($30 million) for the year ended March 2016, down from INR2.1 billion the year before. Over the same period, net profit dropped from INR730 million to INR561 million.

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