Even as news of a slowdown emerges from various destinations, the fact that India will remain a better performer than many of its peers is being reiterated. UK-based private equity player has closed its $2.9 billion private equity fund, Actis Emerging Markets 3 (AEM3), exceeding its target of $2.5 billion. Of this, the management intends to invest around $1 billion in India over the next three to four years.
Commenting on this significant development, JM Trivedi, partner and Actis head for South Asia said, ?We remain positive on the Indian growth story and will continue to build value for our partners and investors. We expect to invest approximately $1 billion in India over the next three to four years.?
?Actis has been a consistent private equity investor in India for more than ten years and is recognised as being a pioneer in management buyouts in the market,? Tiwari added.
Paul Fletcher, senior partner at Actis said, ?We are delighted to have assembled such an outstanding group of investors who continue to recognise the opportunities for private equity investment across the emerging markets, despite the current economic climate.?
The details of the allocations and sectors will be decided in the coming months and then the investment screening would start, said a company representative. ?At the moment it is too early to speak about investment destinations. However, they will be in accordance to the management?s philosophy,? he added.
At the moment, the fund has committed to eight investments in the emerging markets, including a $149 million management buyout of Paras ? a leading personal care products company in India. Its current portfolio on India includes, the National Stock Exchange, Sandhar Technologies, Phoenix Lamps, Jyothy Labds, Dalmia Cements and Nitrex Chemicals.
AEM3 is the first direct global fund raised by Actis and is one of the largest dedicated emerging markets private equity funds closed in 2008. Essentially, AEM3 includes commitments from a well-diversified group of 100 investors from across the globe, including a number of first time investors in emerging markets. It will be used to build a diversified portfolio of between 30 and 40 investments across Africa, China, India, Latin America and South East Asia, typically investing a minimum of $50 million of equity capital in buyout and growth transactions.