IDFC Alternatives, the Indian alternative assets specialist, has so far received commitments of $644 million for its second India-focused core infrastructure fund.
The firm’s India Infrastructure Fund II (IIF2) was launched in January this year and has a final target of $1 billion. The fund is the successor to IIF1, which was IDFC’s debut infrastructure fund and which closed on $927 million in June 2009.
In a statement, IDFC Alternatives said it had raised $64 million from IDFC, its financial services parent, and a further $580 million from offshore limited partners in North America, Europe and the UK.
It said, as well as fund capital, investors had set aside “additional capital” for co-investments. Further, it said that “substantial re-up commitments” had been received from IIF1 investors.
The fund will post an official close and begin making investments once domestic regulatory approvals are received. IDFC said it was in negotiations with prospective second close investors and that it hoped to reach $1 billion “shortly”.
The statement added that, as at June 30 2013, IIF1 had invested 84 percent of its total capital across 15 portfolio companies in the transport, energy & utilities and urban & social sectors.
“IIF2 will continue with a similar investment strategy of investing in core infrastructure assets in India covering both under-construction and operational assets and with proven existing relationships that have created value,” noted IDFC Alternatives managing partner and chief executive officer MK Sinha.
A 100 percent subsidiary of Indian financial services company IDFC, IDFC Alternatives is an adviser and investment manager across infrastructure, real estate and private equity. It has around $2.8 billion under management and 36 professionals based in Mumbai, Delhi and Singapore.