Europe’s leading publicly traded buyout and venture capital firm, 3i Group Plc is planning to raise the fund which will be invested in Indian ports, power plants and roads to $5 billion.The firm is going to invest with the first $1.5 billion it raises.
3i is shaking hand with the government to invest in india with $320 billion worth of ports, power plants, roads and other projects.The private equity investors find the biggest opportunity in infrastructure which until now have focused on smaller technology and real-estate deals.
Manoj Agarwal, executive director of mergers and acquisitions at ABN Amro Holding NV in Hong Kong said, “There's a lot of capital flowing into India and all that capital needs to find a home which provides continued returns and growth.A logical venue is infrastructure.”
An agreement has been signed by the 3i with the government-owned India Infrastructure Finance Co. to provide equity and debt financing for projects in the world's second-fastest-growing major economy.
Chris Rowlands, 3i's Singapore-based managing partner for Asia said, “We may consider raising a fund but it's too early to talk about structures or scale.''
He added, “The firm, which has been investing in infrastructure projects alongside governments in Europe for the past two decades, plans to use its own funds to invest in power plant, roads and other projects in India. We're ready to invest because of our balance sheet resources.”
The people said , “3i will first contribute $500 million to the equity fund and will raise the remaining $1 billion from institutional investors, including those from the Middle East,. 3i plans to increase the fund to $5 billion in five years, the people said.”
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