India’s Infrastructure Leasing & Financing Services Investment Managers is on track to raise $1 billion for its new India-focused infrastructure fund and co-investment accounts.
The fundraising began last September with expectations of a first close a year later, sister publication Private Equity Internationalreported this April.
IL&FS Investment Managers’ chief executive Archana Hingorani told Infrastructure Investor that the new $500 million fund will focus on both new and existing projects in the road and energy sectors. Another $500 million will be co-invested in projects on behalf of the fund’s limited partners.
For the road sector, in addition to operating portfolios, the firm will consider participating in concessions of PPP projects. While the firm is looking into brownfield conventional power generation assets, greenfield renewable energy projects, including both wind and solar, will also be on its radar.
The Mumbai-based fund manager also expects to explore opportunities in waste management, ports and logistics.
The firm is taking the approach of investing in both new and existing assets so as to mitigate risk and widen dealflow while offering better returns to investors in the fund, Hingorani said in another interview with the local press.
With its previous funds now fully deployed, the firm is also looking to sell five of its investments held by two infrastructure vehicles . The investments, listed and unlisted, comprise portfolio companies in the road and energy sectors, according to Hingorani.
“For listed assets, we are looking for a good pricing to sell the shares. For the unlisted, we are seeking strategic investors for the asset sale,” she said, adding that the exits are not urgent as the funds will only mature in three years’ time.
IL&FS Investment Managers, a subsidiary of IL&FS, is one of the oldest and largest private equity fund managers in India. With over $3.2 billion under management, the listed firm has raised and managed 13 funds across asset classes since 1996.