IL&FS PE awaits SEBI nod to buy parent’s infra debt fund

IL&FS Investment Managers Ltd, or IL&FS PE, said on Tuesday it is awaiting clearance from the capital markets regulator Securities and Exchange Board of India to buy the infrastructure debt fund business of parent IL&FS Financial Services Ltd.

IL&FS PE, one of India’s largest home-grown private equity firms by assets under management, had in August disclosed it would buy shares of IL&FS Infra Asset Management Ltd and associated entity IL&FS AMC Trustee Ltd from the parent.

The two entities are the asset management unit and trustee for the infrastructure debt fund, which has a committed corpus of Rs 1,325 crore (around $200 million). Early this year, it added another chunk to the corpus.

The PE firm would pay Rs 21 crore for an 86.61 per cent stake in IL&FS Infra and full ownership of IL&FS AMC Trustee, it had said earlier.

In July, the company had said it was expanding its business mandate beyond pure equity-driven private equity funding to include debt funds and what it called 'investment banking-led private equity transactions for stressed assets'.

IL&FS PE, which continues to focus on divesting existing funds and raising funds across all verticals, struck exits worth Rs 108 crore in the second quarter ended September 30, compared with exits worth Rs 109 crore in the April-June period.

It did not disclose the investee firms or the firms from where it part-exited in the last quarter.

In the year-earlier quarter, it had registered exits worth Rs 177.5 crore.

The company's consolidated revenue for the second quarter rose a tad to Rs 51.4 crore from Rs 48.2 crore in the first quarter.

Once India's top PE firm by active assets under management (AUM), IL&FS PE lost the position to IDFC Alternatives last year as the latter raised two new funds, including a huge corpus for its new infrastructure fund.

The PE firm said it expects to add modest sums to the committed capital of all three asset verticals – real estate, infrastructure and sector-agnostic private equity – in the rest of this financial year.

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