Abu Dhabi’s sovereign fund mulls India entry

According to experts, the firm will set apart $1 billion for India, which will primarily target the infrastructure sector, especially power and renewable energy.

“Being a very large sovereign fund with hundreds of billions of dollars in assets, it would look at longer span of investments of 10-12 years before seeking an exit option, unlike other funds which may look at an exit in 5-6 years. Infrastructure projects, with their long gestation periods, are thus well-suited for such investment,” a source said. The firm is currently in discussions with consultants from BDO — which has offices in West Asia — to chalk out a road map for entering the country.

The Abu Dhabi fund’s move comes at a time when stock market volatility has scuppered the plans of many Indian companies to raise capital through public offerings, opening up new opportunities for private equity players. State-run Indian Oil Corporation, for instance, has put on hold its plans to raise Rs 20,000 crore through a follow-on public offering (FPO) owing to the difficult market conditions and the spike in crude oil prices. The FPOs of Steel Authority of India and Oil and Natural Gas Corporation have also been deferred

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