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Fund News In Brief

Apollo Global Management and ICICI Venture, the private equity arm of No. 2 Indian lender ICICI Bank, are close to raising $350 million to invest in distressed assets in India, two sources with direct knowledge of the matter told Reuters. Few funds in India specialize exclusively in distressed assets, but a sharp slowdown in economic growth is expected to create opportunities to invest in struggling companies.

First Reserve Corp. is looking to raise $6 billion for its thirteenth fund, according to a source. The target is much lower than the $9 billion collected by the firm’s last fund, First Reserve Fund XII LP, in 2009. Fund XII had initially been looking to raise $12 billion but came in below its target. Investors of Fund XII include the California State Teachers’ Retirement System and the the California Public Employees’ Retirement System as well as the Washington State Investment Board. Fund XII hasn’t performed well. The pool has generated a net IRR of -1.8 percent, according to Sept. 30 data from CalPERS. The results are worse with CalSTRS, which according to March 31, 2011, data, has the fund producing a net IRR since inception of -8.9 percent.

Lower mid-market firm River Associates Investments has closed its sixth fund, River VI, with $222 million. The firm says its original target was $200 million. The fund comes in at double the previous $110 million fund. Chattanooga, Tenn.-based River Associates was formed in 1989.