The Standard Chartered IL&FS Asia Infrastructure Growth Fund has held a first close on $568 million.
The fund, which is targeting between $800 million to $1 billion, was launched in early 2008 and expects to achieve a final close “later this year”, said IL&FS Investment Managers, the private equity arm of Indian finance firm Infrastructure Leasing & Financial Services.
IL&FS and Standard Chartered are the fund’s co-sponsors and have each committed $150 million. The fund will invest in infrastructure assets across the region.
The India finance ministry estimates that approximately $500 billion will be needed until 2012 to invest in infrastructure projects in the country, with roughly 30 percent of the financing needing to come from private firms.
In December 2008, IL&FS closed its India Real Estate Fund II on $895 million, exceeding the original $750 million target. In September 2008, it raised $225 million for its India-focused private equity growth capital fund, falling short of its target of $400 million.
The firm currently manages $2 billion in assets across private equity, real estate and infrastructure funds.
IL&FS was not available for comment at time of press.