IL&FS raises $225m fund

The Mumbai-based private equity firm has raised $225 million for an India-focused private equity growth fund, falling short of its target of $400 million.

IL&FS Investment Managers, a subsidiary of India’s Infrastructure Leasing and Financial Services, has closed a $225 million growth capital fund focused on India.

The firm was targeting $400 million, but decided to round off fundraising at $225 million in September owing to difficult market conditions. “The market was completely falling apart, so we thought we should close,” said Archana Hingorani, CEO and executive director of IL&FS Investment Managers. She added: “It has less to do with India or with fund managers,  and it is more about the current environment.”

IL&FS will make investments across various sectors with the exception of greenfield infrastructure and real estate from the new fund, said Hingorani. It will invest largely in sectors such as manufacturing, information technology, pharmaceuticals and service-oriented infrastructure. It seeks to invest between $15 million and $30 million per deal.

Earlier in the week, the firm closed its second real estate fund on $895 million, raised entirely from foreign investors.

The firm is also currently fundraising for the Standard Chartered IL&FS Asia Infrastructure Growth Fund in partnership with Standard Chartered bank. That fund is looking to garner commitments of $800 million to be invested in infrastructure assets across the region. Standard Chartered and Infrastructure Leasing & Financial Services have each committed $150 million to the fund.

The firm today manages assets of about $2 billion across private equity, real estate and infrastructure funds.

IL&FS Investment Managers could not be reached by the time of going to press.