Alcazar invests in Indian engineering company, to launch new fund

Alcazar Capital has invested in Bumi Geo Engineering and plans to launch its maiden third-party fund to invest in infrastructure services and logistics in India

Alcazar Capital, a Dubai-based private equity firm, has invested $10 million (€6.4 million) in Bumi Geo Engineering, a company serving the infrastructure sector.

Established in 2002, Bumi provides engineering services to the power and urban infrastructure sectors. Its portfolio of projects involves hydroelectric power plant and urban projects such as the Delhi Metro. Outside of India, the company has operations in Singapore, Dubai and Europe.

Bumi will use the investment to consolidate its position in the geo engineering space in India and overseas. Dinesh Tiwari, a partner at Alcazar Capital, told PEO the firm would like to increase its stake in the company in the future.

Tiwari said that the firm manages a $400 million proprietary fund that invests globally in emerging markets, with a focus on India, the Middle East and North Africa. The fund is backed by Agility Logistics, a Kuwaiti logistics and supply chain management company with annual revenues of more than $6 billion.

Alcazar will soon raise an India-specific private equity fund, seeking capital from third party investors for the first time. Its maiden third-party fund is targeting $200 million to make investments in logistics and infrastructure services.

Tiwari said that fundraising for the Indian fund will start in two to three months time and the firm expects to hit a first close in the first quarter of 2009. In the meantime, “we will continue to warehouse deals,” he said.

Alcazar also has loose plans to launch a MENA-focussed fund at a later stage, further details of which are yet to be ironed out, according to Tiwari.

A few of Alcazar’s deals do date include an investment in Telecom Kenya, for which it teamed up with France Telecom to acquire a majority stake; Korek Telecom, which operates mobile phone services in Kurdistan in Iraq; and Aladdin Media, a Chinese outdoor media company.