APG, Piramal Enterprises plan to raise $500m for second India infra fund: Report

Photo: Reuters

Dutch pension fund manager APG Asset Management and Ajay Piramal-controlled Piramal Enterprises are planning to raise a second fund of about $500 million to invest in infrastructure projects in India, Business Standard reported.

For the first fund, the two entities had announced a joint corpus of $750 million in 2014, most of which has already been invested, the report said.

In 2014, the duo had announced a strategic alliance for investing in rupee denominated mezzanine instruments issued by infrastructure companies in India with a target investment of $1 billion over the next three years. PEL and APG had each initially committed $375 million for investments under the strategic alliance.

From the first fund, APG and Piramal Enterprises had announced an investment of $132 million (Rs900 crore) in Essel Infrastructure Ltd’s solar platform across India in 2016. A year-and-a-half later, they pumped in Rs 1,900 crore ($300 million) in Hyderabad-based renewable energy producer Mytrah Energy India Pvt. through mezzanine debt instruments in one of their largest transactions.

At the group level also, Piramal has been actively scouting for deals in the renewables and infrastructure sectors in India. In December, it signed a deal with Sadbhav Infrastructure Project Ltd (SIPL) to provide debt financing worth Rs 600 crore to complete the underlying road projects.

Globally, investors are increasingly looking at Indian infrastructure with interest.

In December, Mint reported that US-based investment firm Global Infrastructure Partners (GIP) is looking to raise India-focused fund this year, besides investing in buyout opportunities. The New York-based fund manager had bought the infrastructure investment business of IDFC Alternatives Ltd in April last year. The infrastructure portfolio of IDFC Alternatives consisted of two funds — India Infrastructure Fund and India Infrastructure Fund II — which have a total corpus of a little over $1.8 billion.

Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) in June said that it will invest $200 million in India’s National Investment and Infrastructure Fund (NIIF) The fund was set up in 2015 as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects in the infrastructure sector. The same month, Mint reported that Morgan Stanley has raised close to $300 million in commitments for its India-focused infrastructure fund.

In October 2017, the Abu Dhabi Investment Authority announced an investment of $1 billion in National Investment and Infrastructure Fund’s Master Fund.

Also Read:

PE firm Actis drops plan to buy Essel Infra’s solar assets in India

Morgan Stanley raises $300m for India-focused infra fund

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.