Quantum Equity Advisors, a Mumbai-based investment firm managed by the mutual fund house Quantum Group, has launched a $500 million (€316 million) infrastructure fund.
The vehicle, called Q India Fund, is expected to close in the next six months and is targeting foreign institutional LPs.
Quantum Equity Advisors is owned by Nasser Munjee, Satish Mehta and Ajit Dayal. Munjee, who will be chairman of the fund, formerly set up Infrastructure Development and Finacne Corporation, one of India's largest infrastructure funding agencies. However after conflict arose between management and stakeholders he resigned. Satish Mehta, who will be managing director, comes from the Housing Development Finance Corporation, where he used to work with Munjee in the 1970’s. Ajit Dayal comes from Quantum Group.
Mehta told Indian publication DNA Money that the fund is targeting an internal rate of return in the mid-20s. He also said that though the fund would not invest in pure real estate projects, it may invest in some with an infrastructure component.
The Indian government estimates that about half a trillion dollars will need to be invested in infrastructure projects in India over the next five years, with much of that financing needing to come from the private sector. The fund joins other infrastructure funds in India launched in the past year by 3i, IL&FS, and IndiaREIT.