IIFL AMC raises $133m for its India Private Equity Fund

IIFL Asset Management Co. Ltd (IIFL AMC) has raised Rs 950 crore for its IIFL India Private Equity Fund, a senior executive said.

Mint reported in May about the launch of the first private equity fund from IIFL, which manages several funds under its alternative assets platform.

The fund is a close-ended Sebi-registered Category II Alternative Investment Fund.

While the firm has closed active marketing of the fund, it is still in talks with a few institutional investors who are looking at investing in the fund, said Prashasta Seth, chief executive at IIFL AMC.

“We have done bulk of the fundraise that we wanted to do. From an active high networth individual’s marketing point of view, we have closed the fundraise. But we are keeping it open for a few institutional investors that are looking to come into the fund,” said Seth.

IIFL was targeting to raise around ₹1,000-1,100 crore for the fund, he said.

“We have raised ₹950 crore and we are expecting another ₹50-100 crore from some institutional investors,” he added.

The private equity fund focuses on backing professional entrepreneurs and has the ability to invest across multiple life stages of a business.

“We will back professional entrepreneurs from this fund. We can come in at multiple stages right from the inception stage to series A. We have the ability to commit multiple rounds that will help fund across the life cycle of the business which will enable entrepreneurs to focus on the business and not be worried about fund raise every 6-12 months,” said Seth.

The fund has already announced one investment so far.

It is investing around ₹100 crore in Tamil Nadu-based Kadaieshwar Homefin Pvt. Ltd, founded by C. Ilango, former managing director and chief executive of mortgage lender Can Fin Homes.

“We have a couple of more investments which are in different stages and will be done in the next two to three months,” said Seth.

IIFL plans to deploy the fund over the next three years and is looking to build a portfolio of around a dozen investments.

“We will make between 12-15 investments through the fund. We will invest between ₹50-100 crore in these companies. We expect to deploy the fund over the next three years,” said Seth.

The fund will focus on the financial, consumer, healthcare and technology sectors, he added.

IIFL’s alternative assets business is currently managing several funds across various asset classes.

IIFL has raised close to ₹4,700 crore since 2012 across various real estate funds under Sebi’s (Securities and Exchange Board of India) alternative investment fund regime.

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