IL&FS PE invests $143M in FY13, down by 60%

IL&FS Investment Managers Ltd (IIML), the country’s largest private equity firm in terms of assets under management, invested Rs 772 crore ($143 million) across sectors, including real estate and infrastructure, during FY13. This also means a fall of nearly 60 per cent, compared to FY12, as most of the funds managed by the PE firm complete their investment period.

According to its annual results statement, IL&FS Investment saw a marginal uptick in its exits, up 3.5 per cent to Rs 538 crore in FY13, compared to the last fiscal.

The slowdown in investment comes as the key funds managed by IL&FS are reaching the end of their commitment period and the firm is now focusing on raising follow-on vehicles and concluding exits. IL&FS India Realty Fund II, which raised an $895 million fund in 2008, completed its investment cycle in March while Standard Chartered IL&FS Asia Infrastructure Growth Fund is also expected to finish the commitment period by the coming quarter.

IL&FS Investment’s growth capital fund, Tara India III, also completed deployment last year and the firm is currently on road to raise new funds in this series.

On a consolidated basis, IL&FS Investment saw its FY13 revenues go up 1 per cent to Rs 226.9 crore, aided by favourable currency movement. Net profit after tax was up 4 per cent to Rs 76.6 crore, compared to Rs 73.5 crore in FY12. 

IIML, which manages assets of around $3.2 billion, has made more than 160 investments and managed over 78 exits since the time of its inception.

Shares of IL&FS Investment closed at Rs 21.25 a unit on Tuesday, up 0.71 per cent on a day when Sensex closed up 0.6 per cent. This gives the company a market capitalisation of Rs 443.91 crore.

“The company has invested a lot of time, effort and senior management bandwidth on fundraising, and expects to see an improved environment, given the recent efforts of the government, in improving macroeconomic parameters, as well as creating more conducive policies. With the company having exhausted its infrastructure funds this fiscal, it would see greater focus on infrastructure fundraisings,” said Archana Hingorani, CEO of IIML.

In February this year, the firm said that it was expecting to raise $200 million across its Middle East infrastructure fund, a new growth capital fund and a public markets fund in Q4 FY13.

(Edited by Sanghamitra Mandal)

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