ICICI nears first close for $800m buyout fund

The Mumbai-based private equity firm has already raised more than $200m from domestic LPs for its first fundraise since the departure of Renuka Ramnath.

ICICI Venture, one of India’s oldest and largest private equity firms, has raised more than INR10 billion (€141m; $207 million) for its third buyout fund, which has a $500 million target and $800 million hard-cap.

The capital committed so far has come almost entirely from domestic investors, according to a source with knowledge of the situation.

It is the Indian firm’s first fundraising initiative following the departure Renuka Ramnath, who resigned as chief executive in April to set up her own private equity firm.

The India Advantage Fund (IAF) Series III, which will make late stage growth and buyout investments, is expected to hold a first close within the next two months, the source told sister news site PEI Asia.

ICICI Venture, which also manages a real estate and mezzanine fund, is currently investing out of IAF Series II, which closed on $841 million in 2006. The firm closed IAF Series I on $267 million in 2003.

Following Ramnath's departure, the firm has seen a reshuffle in its top management. Vishakha Mulye, the former executive director of ICICI Lombard General Insurance, took over as the managing director and chief executive officer, while Parth Gandhi and Prashant Purkar were hired for its private equity investment team.

ICICI Venture is a subsidiary of ICICI Bank. It manages assets of more than $2 billion.