India-Focused Private Equity Funds Closed in 2011 to Date

by Wan Ping Chia

  • 16 Dec 2011
  • PE

As 2011 draws to a close, Preqin’s data reveals that so far 19 private equity funds with an exclusive focus on India, including those in the real assets domain, have closed within the year, raising aggregate commitments of over USD 4.4 billion. Of these 19 funds, 14 are managed by India-headquartered fund managers, while the rest are managed by GPs based in other parts of the world. The three largest India-focused funds closed this year are Macquarie State Bank of India Infrastructure Fund, Everstone Capital Partners II and India Advantage Fund Series 3.

Macquarie State Bank of India Infrastructure Fund (MSIF), ranked top in terms of fund size, is a joint venture between Macquarie Infrastructure and Real Assets (MIRA), State Bank of India and International Finance Corporation (IFC). The USD 1.17 billion fund targets traditional infrastructure assets that include roads, sea ports, airports, power generation, transmission and distribution, gas distribution, telecommunications and logistics businesses.   

Everstone Capital Partners II, raised by Indian fund manager Everstone Capital, is a USD 550 million growth vehicle. The fund seeks opportunities across all sectors, including domestic consumption and infrastructure ancillaries sectors. Launched in January 2010, Everstone Capital Partners II was open exclusively to offshore investors.

Following that is India Advantage Fund Series 3, which raised USD 400 million. Managed by ICICI Venture Funds Management, a private equity firm based in India, India Advantage Fund Series 3 is a growth fund with a diversified industry focus. It aims to invest USD 15 million to USD 50 million each in approximately 17 to 20 portfolio companies.

As various fund managers have target close dates at the end of each calendar year, we expect to see more funds closing in the coming weeks. Currently, there are 78 funds focused exclusively on India still on the road, seeking to raise a total of more than USD 14 billion. Of these vehicles, 59 are managed by India-based firms. They are seeking USD 10.2 billion from investors.

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