IDFC Private Equity has raised $430 million for its second fund.
The fund, IDFC PE Fund II, was targeted for $300 million, but was heavily oversubscribed, says Luis Miranda, president of the Mumbai, India-based firm.
LPs in the firm’s second fund include parent company Investment Development Finance Corp. (with an 8% stake); Mizuho, the Japanese finance company; and KFW of Germany. Miranda says that 70% of the new fund’s LPs are from Asia.
IDFC’s first fund of $190 million is about 70% invested
Portfolio companies include GRM Energy, Gujarat State Petroleum and Delhi International Airport. IDFC also announced that it has expanded its team, with the hire of Prakash Karnik, who was previously with JF Elektra’s private equity fund in India, and Shivani Bhasin, who was previously with Lightyear Capital.
Miranda says that the new fund, like the firm’s first, will invest in companies and deals involved in building India’s infrastructure, a similar focus that The Carlyle Group and Macquarie Bank are investing in with their new, India-based infrastructure funds. Plus, ICICI Ventures is raising a $1 billion fund that will include infrastructure investments in India.
Miranda says that the first fund has already had two exits, including Hotel Leelaventures, which was sold to a consortium of private equity investors, including Japan-based Nomura.
Fund II will make between 15 and 20 investments, ranging in size from $20 million to $50 million.