IL&FS Investment Managers Ltd (IIML) has made fresh investments of Rs 771 crore ($154 million) across growth capital PE, infrastructure and real estate verticals besides completing five partial exits from its real estate portfolio during the quarter ended December 31, 2011 (as against four part-exits in the previous quarter).

Archana Hingorani, CEO of IIML, said, “The tight liquidity situation has presented significant opportunities for investments and in this quarter, IIML has invested Rs 7.7 billion across all the three verticals. Investments of this vintage should help generate attractive returns in the future.”

The quantum of fresh investments is significant for the PE firm which invested Rs 137.5 crore across three deals during the first quarter ended June 30, 2011. The company did not disclose the names of the investee companies but some of its recent deals include Rs 230 crore funding by two of its funds in IL&FS Energy Development Company Ltd, Rs 100 crore investment in SRM Sites Pvt Ltd (a subsidiary of Shree Ram Urban Infrastructure Ltd) and Rs 200 crore investment to buy stake in Indiabulls Infraestate Ltd.

Talking about exits, Hingorani said besides the real estate space, IIML might also exit from growth PE and infrastructure verticals in the coming two quarters.

She cautioned on the fundraising environment but added that there would be considerable interests from long-term investors although subdued markets and uncertainties stretched the marketing timelines ‘significantly’.

“IIML continues to explore new and established markets for fundraising and expects results in the ensuing fiscal,” she said.

IIML reported 13.2 per cent rise in consolidated net profit for the third quarter to Rs 18.6 crore over the same period last year. Bottom-line growth was partly due to lower employee expenses even though advisory fees more than doubled, compared to Q3 FY11. Sequential net profit rose by 3 per cent.

The listed PE firm, with assets of $3.2 billion under management, has reported almost flat consolidated revenues at Rs 57.25 crore for the quarter, compared to Rs 57.87 crore in Q3 FY11.

IIML scrip last traded at Rs 27.1 a share, down 0.7 per cent on the Bombay Stock Exchange, after its results were announced in a weak Mumbai market. At the latest quoted price, the company is valued at Rs 562 crore or about 3.5 per cent of the AUM.

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