Within a month of committing $250 million to three Indian infrastructure focused funds, CDC Group, the UK government-backed private equity fund of funds investor, has announced fresh investments of a total of $185 million to six Indian private equity funds.
CDC has made the following commitments: $50 million to Baring India Private Equity Fund III, $50 million to New Silk Route Private Equity Asia Fund, $25 million to India Value Fund III, $20 million to BTS India Private Equity Fund, $20 million to Avigo SME Fund II and $20 million to VentureEast Proactive Fund. This brings CDC’s overall commitment to private equity funds investing in the region to over $1 billion. These six funds are expected to raise a total of over $2.47 billion for investment in the region.
Last month, CDC Group made commitments totalling $250 million to three funds focused on infrastructure and real estate investment in India. CDC invested $100 million each in IDFC India Infrastructure Fund and the Actis India Real Estate Fund, while $50 million to Kotak India Realty Fund.
In a press note issued from the private equity firm, Anubha Shrivastava, portfolio director, South & South East Asia, CDC, said, “India is attracting increasing interest from international private equity houses - as seen by the scale of investment in 2007 - with many of the domestic firms also raising larger funds. By investing in growth companies, CDC’s capital is able to support the growth of the private sector and foster the next generation of successful enterprise across India, creating jobs and improving the local economy.”
Baring India Private Equity is believed to have closed its third fund at $500 million. It had previously raised $40 million in first fund and $175 million in second fund. The other funds like Avigo Capital Partners, BTS India Advisors and India Value Fund are in the process of raising new funds.