Axis Private Equity raises $150m

Initial fundraising efforts for yet another infrastructure fund in India draw to a close, underpinning the sector’s appetite for private equity investments in the country.

Axis Private Equity, the private equity arm of Axis Bank, has raised $150 million (€96 million) for the first close of its infrastructure fund for India.

The Mumbai-based firm is targeting $500 million to $600 million for the fund and it expects a final close later this year, a person familiar with the fund told PEO.

The Axis Infrastructure Fund will target investments in infrastructure and infrastructure-enabling companies, he said. A statement released by the firm noted that the fund will look to invest a minimum of $20 million per deal in sectors such as oil and gas pipelines, highways, power, irrigation, water supply, sanitation and development of hotels and resorts.

Of late, a number of private equity firms have stepped into the infrastructure space in India and are either raising or have closed funds dedicated to the sector. Over the last month, 3i closed a $1.2 billion fund for investing in infrastructure, Vision Global Investments launched a $1 billion fund and Quantum Equity Advisors launched a $500 million fund focussed on the sector.

Kotak Investment Advisors plans to raise a $1 billion infrastructure-focussed fund and ICICI Venture too is in the process launching one in the range of $2.5 billion to $3 billion. Long-time infrastructure investor IDFC Private Equity is nearing the close of its latest fund as well.

Axis Bank, the firm’s parent company, is the anchor investor in the Axis Infrastructure Fund.