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May 22, 2006

Profile of ICICI Ventures' latest moves

Business Standard has a profile of ICICI Ventures' recent investments and new funds.
Says Renuka Ramnath, managing director and CEO of ICICI Venture: "In the next two to three years we expect to raise another $2.5 billion in the realty space. Our expectation is to manage over $5 billion of real estate assets in the next five years."

But that is not the only area Ramnath and her team are putting their hearts into. Buoyed by the success of its India Advantage Fund, which returned 30-35 per cent on a compounded rate annually, the company has just closed a deal to raise over $1 billion for its India Advantage Fund II, the largest India-focused fund in the private equity market, from which it will retain $850 million.

At three times the size of the older fund, the new fund will focus on two key areas - management buyouts, and assisting Indian companies to acquire companies abroad, for which it will retain 50 per cent of the corpus.

ICICI is also working on two new possibilities: a specialised infrastructure fund, and a mezzanine fund for companies that don't want to lose control and so offer a combination of debt and equity against money.

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.