ICICI Venture Raises $190 m for Fund
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.