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June 19, 2010

"India tops BRICs for Infra Investments"

The Deal magazine has a Cover Story on infrastructure investment opportunities in the BRIC countries with a special highlight on India.

Of all the emerging markets, India best illustrates the benefits -- and the pitfalls -- of PE investment in infrastructure. It has one of the longest track records and runs neck and neck with China in attracting the most infrastructure-related funds and investments. "There's no better place to be," says 3i's Bagla.

...AMP launched its first Asian infrastructure fund in 1994, as did American International Group Inc., through its asset management arm. AMP pioneered the field in India five years later, starting a modest $40 million fund fashioned in conjunction with Indian mutual funds manager Unit Trust of India, now UTI Mutual Funds. That fund is fully divested. AMP launched a second, $120 million fund in 2004.

Britain's 3i started to invest in India in 2005 as part of a global infrastructure fund. It really cranked up participation, however, in 2007, when it announced an India infrastructure-dedicated fund. The $1.2 billion fund closed a year later. 3i itself invested $250 million...Macquarie has been slower off the mark but anticipates an even bigger presence. Its Macquarie-SBI Infrastructure Fund was launched last year in conjunction with the State Bank of India and the World Bank's International Finance Corp. Each committed $150 million. At latest count, the fund has raised $1.037 billion.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in