IL&FS Investment Managers (IIML), the alternative investment arm of India’s Infrastructure Leasing and Financial Services, will target commitments of between $300 million and $350 million for a new private equity fund.
The firm will begin fundraising by the end of 2010, Archana Hingorani, CEO and executive director of IIML, told sister publication PEI Asia. The fund will make growth capital investments across a variety of sectors in India's mid-market she said.
The firm closed its previous growth capital fund, Tara India Fund III, on $225 million in September 2008. That fund was targeting $400 million but closed short of its target owing to a difficult fundraising environment at the time.
About 75 percent of Tara India Fund III has been committed thus far, Hingorani said. The fund is largely focused on sectors such as manufacturing, information technology, pharmaceuticals and service-oriented infrastructure and invests between $15 million and $30 million per transaction.
The firm also closed an $895 million real estate fund in December 2008.
IIML currently manages an infrastructure fund in partnership with Standard Chartered banks as well. The Standard Chartered IL&FS Asia Infrastructure Fund currently manages $658 million to invest in Asian infrastructure. Hingorani declined to comment on whether the fund has seen a final close.
In all, IIML manages north of $2.6 billion across funds focused on private equity, real estate and infrastructure.