Religare Venture Capital, the private equity arm of Indian financial services firm Religare Enterprises, and Mumbai-based private equity and real estate investment firm Milestone Capital have formed a 50:50 joint venture to manage a private equity fund targeting INR6 billion ($120 million; €90 million).
The joint venture will manage the India Build-Out Fund I, which is currently being managed by Milestone Capital. The fund has already garnered capital worth INR1 billion and Religare and its affiliates have committed an additional INR600 million. The remainder of the capital will be raised domestically, the firms said in a statement.
India Build-Out Fund I fund will focus mainly on investments in the healthcare and education sectors in India.
“Healthcare and education are two sectors which we believe are poised for balanced growth,” Sunil Godhwani, the chief executive officer and managing director of the company, said in a statement.
Religare intends to create a large pool of asset management businesses alongside its transaction services businesses, he added. The company provides asset management, life insurance, wealth management, equity broking, commodity broking, investment banking and lending services. It also manages the Vistaar Religare Film Fund, a private equity vehicle investing in films and production companies.
Milestone Capital manages assets of more than $1 billion across five funds focused on private equity, real estate development and real estate yield-driven projects.
Religare was unavailable for comment at press time. Milestone did not respond to a request for comment.