The UK-based private equity firm 3i said it is ready for a second India infrastructure fund for 2011, valued at around ?2-3 billion. Michael Queen, chief executive officer (CEO) of 3i told FE that the firm?s experience with its first India infrastructure fund valued at $1.2 billion had been very good and this encouraged them to go for a second one.
?The fund will make its debut in 2011 and we are specifically interested in areas like ports, power sector, water and water treatment, as well as import of capital goods,? said Queen.
India being the second fastest growing large economy in the world, is witnessing huge investments in all these areas, a financing opportunity which 3i cannot miss. In its last foray, the firm had invested in Adani group?s port project at Mundhra, and the company has remained invested in it with no intentions of pulling out just yet.
?We are still invested, and don?t forsee pulling out for a while, it is a revenue earner for us,? said Queen.
Queen also said the firm was also looking at the Non-Banking Financial Companies (NBFCs) sector for investing as they required debt capital.
?However, we do realise that the interest differential and the depth of the Indian capital market are some of the inhibiting factors with regard to private equity firms,? he said.
Known to be a little conservative in his approach, Queen has been largely credited with steering 3i out of some troubled times following the global economic meltdown, largely because he says that the company had not had too much exposure to real estate.
He said that while emerging markets were exciting, he is particularly excited about the India story since it is fuelled by domestic demand to a large extent. ?Looking at India right now I am reminded of America in the 19th century with its Rockefellers and captains of industry. The Adanis, Ambanis, and Tatas are reminiscent of that time in their energy and ambition,? he said.