ICICI reaches $190m first close on fourth fund

The Mumbai-based firm started marketing its fourth private equity fund in the third quarter of 2014.

Indian private equity firm ICICI Venture, the investment arm of ICICI Bank, has reached a first close on its fourth fund after more than a year in market, according to a source familiar with the fundraising.

ICICI has raised $190 million toward its $500 million target for its India Advantage Fund Series 4.

The fund is sector agnostic, similar to its predecessor, India Advantage Fund Series 3, a vintage-2009 vehicle that raised $400 million. The firm is, however, bullish on the industrial space at the moment, specifically in export-led opportunities, the source told Private Equity International.

Limited partners who have committed to ICICI’s funds include the Punjab National Bank, Life Insurance Corporation of India, Andhra Bank, ICICI Bank, Hamilton Lane and the Los Angeles City Employees’ Retirement System, according to PEI Research & Analytics.

Since its establishment in 2003, ICICI Ventures has delivered a 3x multiple and 50 percent internal rate of return across its products, as previously reported by PEI.

ICICI has made investments in Bangalore-based private bank ING Vysya, payment systems company BTI Payments and restaurant business Devyani International, among others.

In 2014, ICICI entered into a joint venture with US-based private equity firm Apollo Global Management to establish its maiden special situations fund, AION Fund. That fund reached a final close on $825 million in October 2014. It bought the financial services business of GE Capital India for an undisclosed sum in March this year, as reported by PEI.

ICICI manages over $2 billion of assets across private equity, real estate, mezzanine finance, special situations and industrials and infrastructure.