Indian private equity firm IL&FS Investment Managers Ltd has raised $895 million for a new realty fund and is on the verge of closing the first tranche of an infrastructure fund, a top official said on Tuesday.

The realty fund, the second IL&FS fund focussed on the real estate sector, exceeded its initial target of $750 million. It has commitments from two sovereign wealth funds, U.S pension funds and university endowments, Archana Hingorani, chief executive told Reuters in an interview.

IL&FS launched an Asian infrastructure fund in the second quarter of 2008, and expects to close the first tranche in about a month, she said without elaborating on the size of the tranche. The eventual size of the fund would be $800 million, she said.

"This market is different from earlier," she said, referring to the impact of the global credit crisis.

"We are close to a first close. It should happen shortly."

Hingorani said IL&FS has already made four commitments worth between $25-50 million in residential and industrial projects.

IL&FS is one of India's oldest private equity firms and has about $1.9 billion under management. 

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