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, the private equity fund which was till now focused on the real estate and infrastructure sector, has launched $150 million (Rs 600 crore) India Build Out Fund-I (IBF-I), which will invest in sectors such as education and media & entertainment. The fund also has a green shoe option of $50 million (Rs 200 crore).
The majority of investments of the fund will be in education service providers focusing on K-12, finishing schools, test preparations, colleges, and so on. The fund will also invest in ancillary companies involved in sectors such as domestic consumption plays, physical infrastructure build-out and skills infrastructure build-out.
Milestone has hired Rajesh Singhal (pictured), who was working as associate director with Intel Capital, to spearhead IBF-I. Singhal joined Milestone in May this year as a Managing Partner and has over 13 years of knowledge in the industry. Singhal, who was with ICICI Bank before Intel Capital, has made investments such as NIIT Technologies and BPO Nipuna Systems.
The fund will also invest in hospitality and tourism, wellness, retail, content and consultancy providers. The fund will also invest in firms involved in construction services and equipment providers, logistics, facilities management and alternate energy. IBF-I, which is a five year close ended fund, is targeting a return of 30 per cent compounded annualized IRR. The average investment size for the fund is planned to be $7.5-15 million (Rs 30-60 crore).
Milestone was started by former Pantaloon Retail Chief Operating Officer Ved Prakash Arya last year and has since then launched four other domestic funds, totalling Rs 2,400 crore. It has also launched a $400 million offshore fund registered inMauritius. Its investments are focused in the western and southern regions ofIndia and has invested in warehousing, green buildings, affordable housing and in Tier–II/Tier–III cities.