IDFC Alternatives, the alternate asset management arm of IDFC Limited, is looking to raise $100 million (close to Rs 700 crore) as private equity (PE), people with knowledge of the development told FE. The money, to be raised locally, would be invested across areas such as healthcare, education and value-added telecom services.
IDFC Alternatives, which invests via three asset classes – private equity, infrastructure and real estate, boasts $3.4 billion worth of assets under management; it now runs three private equity funds, two infrastructure equity funds and two domestic real estate funds. A spokesperson for IDFC Alternatives refrained from commenting on the story.
Between January and June, PE funds raised nearly $7 billion with those that invest in start-ups picking up close to $1 billion,Grant Thornton estimates. Of this, nearly a fourth or $1.9 billion was raised for investments in consumer-focussed businesses such as IT-enabled services, business services, financial services, consumer and healthcare. While KKR raised $ 3.3 billion, Norwest Venture Partners mopped up $1.2 billion and HDFC picked up $405 million.
The PE franchise of IDFC Alternatives has made investments in the consumer segment, healthcare, food and agriculture, media and telecom, and infrastructure and industrial space; over R5,500 crore has been invested so far in 36 companies and around 27 exits have been made. Investors have been returned $850 million. While the R840 crore India Development Fund, raised in 2004, has been fully exited at a net IRR of 32%, the two other funds raised in 2006 and 2008, have also seen partial exits.
Among IDFC Alternatives PE’s investments is Parag Milk Foods which it exited partially via the firm’s initial public offering in May, realising over R180 crore for the 10% stake sale. The fund continues to hold 7% stake in the company.
In 2013, IDFC Alternatives invested close to R125 crore in Medi Assist Healthcare Services Private Limited.