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IDFC eyes $2bn for Indian infrastructure

The Indian private equity firm is prepping its fourth fund targeting infrastructure investments in the country.

Indian private equity firm IDFC Private Equity, which is focused primarily on the infrastructure sector, is planning to raise a total of $2 billion (€1.3 billion) for infrastructure investments in India.

Luis Miranda, IDFC chief executive officer, told Bloomberg today that the firm will raise $700 million from overseas investors for a third fund, and expects to raise another vehicle over the next three months for a combined $2 billion.

The Mumbai-based firm has two private equity funds, the $192 million India Development Fund and the $440 million IDFC Private Equity Fund II. Miranda said in the interview that an estimated $15 billion to $20 billion is being raised as the Indian government continues to encourage private capital to invest in infrastructure assets necessary for sustained economic growth in the country.

Yesterday it was reported that UTI Asset Management, one of India’s largest asset management companies, is raising a $600 million fund to invest in Indian infrastructure. The fund, being raised through subsidiary UTI International will make direct investments in infrastructure projects throughout the country such as roads and bridges.

The infrastructure investment opportunity globally is drawing billions in LP capital commitments. Earlier this month, Morgan Stanley Infrastructure Partners closed its latest global infrastructure fund on $4 billion, far exceeding its initial target of $2.5 billion. The fund has already made more than $1 billion of investments. Global Infrastructure Partners also closed its debut $5.6 billion infrastructure vehicle, with capital from founding investors Credit Suisse and General Electric.