ICICI Ven­ture Raises $190 m for Fund

The Economic Times - - Companies - Our Bureau

Mum­bai: One of In­dia’s largest do­mes­tic pri­vate equity funds, ICICI Ven­ture, con­cluded a first clos­ing of its fourth pri­vate equity fund at ap­prox­i­mately $190 mil­lion, in yet an­other in­stance of home­grown play­ers rais­ing fresh pools of cap­i­tal from global in­vestors.

The to­tal size of the In­dia Ad­van­tage Fund Se­ries 4 (IAF4) is $500 mil­lion, but with this first round clo­sure, the plan is to start in­vest­ing right away. The clos­ing saw strong sup­port from ICICI Ven­ture’s ex­ist­ing in­vestors, in­clud­ing a sig­nif­i­cant com­mit­ment from a large Asian sov­er­eign wealth fund. Even though its iden­tity was not dis­closed, sources said Sin­ga­pore’s Te­masek played the role of an­chor in­vestor.

Like its pre­de­ces­sors, IAF 4 will also be a sec­tor ag­nos­tic fund that will scout for op­por­tu­ni­ties in the $25-$50 mil­lion range. The first trans­ac­tion of about $20 mil­lion is likely to be an­nounced in the next few days.

“By grow­ing core prac­tices, our aim is to add more cash re­serves that are ready for fresh cap­i­tal de­ploy­ment, as op­por­tu­ni­ties arise,” said Prashant Purker, CEO, ICICI Ven­ture Funds Man­age­ment. “By util­is­ing mul­ti­ple strate­gies and go­ing be­yond wait­ing for cap­i­tal mar­kets for ex­its, we do sec­ondary deals and strate­gic sales, and have man­aged to cre­ate a strong ex­its and in­vest­ments pipe­line.”

Out of a port­fo­lio of 9 com­pa­nies, ICICI Ven­ture’s third fund has par­tially ex­ited in three which in­cludes Devyani In­ter­na­tional, ING Vyasa Bank and Team­Lease. They have also cre­ated the path­way for at least two other ex­its with the im­mi­nent IPO of Ad­labs and a mez­za­nine struc­ture for RJ Corp.

Since its 2005 in­cep­tion, the firm has re­turned $1.3 bil­lion to its in­vestors while in the past 6 years alone, it has re­alised $845 mil­lion from 33 ex­its across its first 3 PE funds. It has built its as­sets un­der man­age­ment to over $3 bil­lion since its trans­for­ma­tion from one of In­dia’s largest VC play­ers in the 1990s to its cur­rent sta­tus as one of In­dia’s most di­ver­si­fied al­ter­na­tive as­set man­agers.

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