3i India Infrastructure Fund raises US$1.2bn, 20% above target
3i Group plc (“3i”), a leading global private equity firm, has announced it has raised US$1.2 billion for its 3i India Infrastructure Fund (“the Fund”), exceeding the US$1 billion target by 20%.
The Fund, established to apply the successful investment strategy of 3i’s global infrastructure business to the rapidly growing Indian infrastructure market, is managed by 3i’s specialist infrastructure investment team based in Mumbai, Delhi, London, New York, Frankfurt and Singapore.
In 2007, 3i formed a strategic partnership with the Indian Government-owned India Infrastructure Finance Corporation Limited (IIFCL) to cooperate on financing infrastructure projects in India. This was one of the first such agreements between the Indian Government and a third-party investor to support the estimated US$450 billion of infrastructure investment that India requires by 2012.
The 3i India Infrastructure Fund obtained commitments from a high-quality and well-diversified group of 16 limited partners from ten countries across Europe, North America, Asia and the Middle East, which it will invest in a balanced portfolio of investments. As announced last September, 3i Infrastructure Limited, the FTSE 250 infrastructure investment company, and 3i are the largest investors, each committing US$250 million to the Fund.
Targeting around ten investments over the investment period, the Fund’s portfolio already includes a US$227 million investment in Adani Power, which is developing a portfolio of power plants across India, as well as a US$101 million investment in Soma Enterprise, an infrastructure developer focussing on build-operate-transfer (BOT) projects.
Michael Queen, Managing Partner and head of 3i’s Infrastructure business, commented: “It is a positive endorsement to have received such strong support from such a high-quality global investor base for this Fund, validating the attractiveness of the investment opportunity and the expertise of our investment team. The closure of this Fund significantly above target represents a major milestone for us and will enable projects with a capital value of up to US$5 billion to be completed.”
Anil Ahuja, Managing Director and co-head of 3i’s Asian operations, added: “The scale of the opportunity for infrastructure investment in India is tremendous, and our team, which combines long-standing international investment expertise with a deep local presence, is extremely well-positioned to crystallise the strong pipeline for the benefit of India, our investors and other partners. “
“This release is not an offer of 3i Group plc, 3i Infrastructure Limited or 3i India Infrastructure Fund securities for sale in the United States and 3i Group plc, 3i Infrastructure Limited and 3i India Infrastructure Fund securities may not be offered or sold in the United States absent registration or an exception from registration. Any public offering of 3i Group plc, 3i Infrastructure Limited or 3i India Infrastructure Fund securities in the United States would be made by means of a prospectus that could be obtained from 3i Group plc, 3i Infrastructure Limited or 3i India Infrastructure Fund (as appropriate) and would contain detailed information about 3i Group plc, 3i Infrastructure Limited or 3i India Infrastructure Fund, their relevant management and financial statements. None of 3i Group plc, 3i Infrastructure Limited or 3i India Infrastructure Fund is currently making any public offering in the United States and no such prospectus has been issued.”
3i is a world leader in private equity and venture capital. We focus on buyouts, growth capital, venture capital, infrastructure and Quoted Private Equity and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and shareholders.
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