Investcorp today announced the launch of its operations in India with the imminent completion of its first deal, the acquisition of the Private Equity and Real Estate investment management businesses of IDFC Alternatives Limited (IDFC Alternatives), a subsidiary of IDFC Limited, a company listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).
The acquisition, which has already received the required regulatory approvals from the Securities and Exchange Board of India, is expected to close on the 31st of January 2019. This transaction will mark Investcorp’s entry into India and is in line with the firm’s long-term strategy of expanding its investment footprint and client franchise globally.
The acquisition of IDFC Alternatives’ Private Equity and Real Estate businesses along with the existing team of around 20 people will provide Investcorp with immediate access to the large and growing Private Equity and Real Estate markets in India, together with an experienced team of seasoned professionals with a network of well-established relationships in the domestic market developed over many years. Combined assets under management (AUM) of the India Private Equity and Real Estate businesses are approximately $430 million.
“Our first direct investment into the Indian market is a major milestone for our business, which also marks our focused expansion into Asia,” said Mohammed Alardhi, Executive Chairman of Investcorp. “IDFC is a well-recognised brand and a fantastic addition to Investcorp’s portfolio from an investor perspective. This acquisition will be instrumental in our plans to grow our investments into the country as part of our wider Asia strategy.”
“We are entering the Indian market at an important time in its growth trajectory,” said Rishi Kapoor, Co-Chief Executive Officer of Investcorp. “Rising incomes, strong growth and stable policies including reforms like the national Goods and Services tax regime make India particularly attractive for investment. We see great potential for the Indian market and have ambitious plans for the years ahead.”
The Private Equity business, led by Girish Nadkarni and Gaurav Sharma, currently has two active funds. The team focuses on investing in grassroots consumption driven businesses within the healthcare, consumer products, financial services, food and agriculture, media and telecom sectors. The Real Estate business, led by Ritesh Vohra, also currently has two active funds. The current funds provide structured senior credit within the residential real estate sector with a focus on projects in Mumbai, Bangalore, Hyderabad, Chennai and the National Capital Region.