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Grapevine: Investcorp raising first India fund; IFC, DEG invest in Oriental Structural's InvIT
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Bahrain-based alternative asset manager Investcorp is raising its maiden real estate fund for India with a target corpus of $250-300 million, a media report said. 

Investcorp is also looking to raise about $100 million for a private equity fund that it took over from IDFC Alternatives Ltd, Mint reported, citing three people aware of the development.

The firm had entered India last year with acquisition of the PE and real estate funds businesses of IDFC Alternatives. IDFC’s PE and realty fund businesses had assets under management of about $430 million.

Founded in 1982, Investcorp has rapidly expanded in recent years, especially after Mohammed Alardhi took over as the executive chairman in 2015. Its high-profile acquisitions via its corporate investments unit in the past include luxury brands such as Tiffany & Co., Saks Fifth Avenue, Gucci and Breguet.

In another development, The Economic Times said Beijing-based Asian Infrastructure Investment Bank, Germany’s DEG, International Finance Corporation and India's HEG have invested in an infrastructure investment trust (InvIT) formed by Delhi-based Oriental Structural Engineers Pvt. Ltd.

Citing two people familiar with the deal, the report said that Oriental raised Rs 2,300 crore via the InvIT. Oriental will hold 60% of the InvIT's units. The InvIT consists of five highways with a total length of 2,804 lane kms.

The InvIT is at least the fifth such trust in India, as the investment vehicle gains popularity among investors looking for long-term revenue-generating assets like toll roads.

The Securities and Exchange Board of India (SEBI) notified regulations for setting up such trusts in 2016. IRB Infrastructure Ltd was the first company to float an InvIT's IPO in May 2017. The second InvIT to float an IPO was Sterlite Power's India Grid Trust, followed by L&T Infrastructure Development Projects Ltd.

Last month, billionaire Ajay Piramal-led Piramal Enterprises Ltd and Canada Pension Plan Investment Board signed an initial pact to co-sponsor a renewable energy-focussed InvIT.

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