India’s UBL Asset Management eyes $500m infrastructure fund

UBL Asset Management, a new subsidiary of India’s UTI Bank, is looking to raise a $500 million private equity fund to invest in India’s infrastructure.

India’s UBL Asset Management is looking to raise $500 million for a new private equity fund to invest in India’s infrastructure, Alok Gupta, the firm’s managing director and chief executive officer, told PEO.

The initiative by UTI Bank’s wholly owned subsidiary comes in the wake of growing efforts aimed at developing India’s infrastructure, which many have criticized as lagging the country’s rapid economic growth, as well as development in China. UBL was formed only toward the end of 2006 to mark UTI Bank’s foray into private equity investment.

UBL hopes to commence fundraising in two months, and will be targeting investors in the Middle East, Europe, Asia, and the US to a lesser extent, Gupta said, adding that it is not yet decided if UBL will engage a placement agent.

Gupta said: “The bank hasn’t taken a decision of any kind…but they will be a sponsor.”

The proposed fund will target transportation, telecommunications, energy, hospitality and healthcare businesses. The average investment size is expected to range between $20 million to $50 million, Gupta said.

Ahead of the fundraising, UTI Bank has already made an investment in an area the proposed fund would have committed to, Gupta said, declining however to elaborate. He added that UBL has also been approached with investment opportunities for the fund it intends to raise after the firm sorts out its “legal structure and other formalities.”