IDFC Private Equity will secure $700 million from overseas investors for a third fund soon, Luis Miranda, chief executive officer, said in an interview in Mumbai. He expects to raise another fund over the next three months for a combined $2 billion in assets.
3i Group Plc, Deutsche Bank AG and Morgan Stanley are increasing alternative investments in India, where private equity firms raised seven times more than for China in the first quarter. Miranda estimates between $15 billion and $20 billion is being raised as the government woos funds to build the airports and power stations needed to sustain economic growth.
IDFC has made investments through two private equity funds, the India Development Fund and the IDFC Private Equity Fund II, that collectively manage $630 million.
Miranda and his team have screened 900 proposals since starting IDFCs private equity arm in 2002, he said. The group has invested in just 25, he said.
Infrastructure investing for us in India is in areas where we see a bottleneck, said Miranda. That could be education, healthcare or power, ports, roads and airports.
Holdings include Quipo Infrastructure Equipment Ltd, Indias largest equipment rental company, and the Delhi International Airport Ltd, which is renovating the terminal in the capital. IDFC exited its investment in GMR Infrastructure Ltd when the operator of airports in New Delhi and Hyderabad sold shares to the public.
3i Group, Europes biggest publicly traded private equity firm, raised $1.2 billion last month for India, where infrastructure projects are estimated by the government to reach $450 billion by 2012.