VCCircle

Who said IFCI Venture Capital Funds is dead? The defunct venture capital arm of the erstwhile-troubled-but-now-hot-property IFCI is launching a private equity fund focused on domestic automotive components industry. The firm is tying up with German consultancy UBF-B for a €100 million (almost Rs 550 crore) fund, The Hindu Business Line reports, quoting Rajeev Mukhija, Deputy General Manager, IFCI Venture Capital Funds.
The 10-year fund is expected to have its first closing on March 31, 2008. It will have a two tier hybrid fund structure - with Indian investors contributing in India Domiciled Trust Fund and international investors contributing to Overseas Domiciled Limited Liability Company, says the report. The overseas one, which is expected to have €40 million, is likely to be registered in Cyprus or Mauritius.
IFCI has already committed 30 per cent of the fund's corpus (€30 mllion or Rs 165 crore), while UBF-B will obtain commitments for €40 million. The fund will be jointly managed by IFCI and the German partner.
This is an interesting development since the fund has been inactive for a while. When was the last time you heard a deal from IFCI Venture Capital Funds? Take a look at their portfolio here, though.