Aditya Birla nears $107m first close

Domestic investors have helped the Mumbai-based private equity firm near a first close on its debut fund, targeting $250m.

Aditya Birla Private Equity, a subsidiary of Indian conglomerate Aditya Birla Group, has received commitments of more than INR5 billion ($107 million; €72 million) from domestic investors for its debut private equity fund.

The firm will announce a first close for domestic investors shortly, it said in a filing to the Indian stock exchanges. Aditya Birla Private Equity Fund I is targeting commitments of $250 million from domestic and international investors. It will tap the international markets following the completion of fundraising domestically.

The parent company has made a commitment of $100 million to the private equity business as a whole, of which 20 percent was allocated to this fund as its anchor investment, Bharat Banka, managing director and chief executive officer of the firm, told PEI Asia at the time fundraising was launched in January. The remainder will be committed to subsequent funds. 

Aditya Birla Private Equity Fund is focused on the consumption-led growth sector, infrastructure enablers, manufacturing ancillaries, and niche emerging sectors such as education, healthcare, logistics, digital media and entertainment.

The firm’s average investment size is between $20 million and $25 million per deal, going up to a maximum of $50 million. Two investments it had made on behalf of the Birla family office have been transferred to the private equity fund. These include the acquisition of a minority stake in the Bombay Stock Exchange and the purchase of a 26 percent stake in retail chain V-mart.

The $28 billion Aditya Birla Group has interests in the mobile telecom, financial services, natural resources, business process outsourcing and branded apparel sectors among others.