PTC India

Emerging markets investor Ashmore and power trading firm PTC India have unveiled their new joint venture aiming to raise $750m to invest in energy infrastructure across India.

The Indian power trading company launched its first power-focused private equity fund in May, which it seeded through a share issue on the Bombay Stock Exchange. The terms of the joint venture agreement with Ashmore are still being discussed. The fund's target amount has not been disclosed.

The Indian power trading solutions provider will use INR5bn raised from a recent equity share issue to anchor the fund.

The Asian Genco deal backed by firms including General Atlantic, Goldman Sachs, and Norwest Venture Partners marks the largest-ever equity investment in the Indian power sector.

But even as there are more managers seeking more money in the asset class than ever before, the weak fundraising environment is making it difficult for the 99 funds in market to reach their targets. Meanwhile, investors are demanding lower fees, closed-end fund structures and independent management teams, according to a survey by placement agent.

The total value of private equity investments made in India fell 77 percent in the first five months of 2009 - but fundraising fever continues.