Investcorp acquires IDFC Alternatives' private equity, realty arms

MUMBAI: Bahrain-based global alternate assets manager Investcorp on Wednesday announced the start of its operations in India with the acquisition of the private equity (PE) and real estate (RE) investment management businesses of IDFC Alternatives Ltd.

The deal has already received approval from the Securities and Exchange Board of India (Sebi), and is expected to close on 31 January, Investcorp said in a statement. The firm did not disclose the value of the deal.

Mint reported in May 2018 that Investcorp was in talks to acquire the PE and RE investment businesses of IDFC Alternatives.

The transaction marks Investcorp’s entry into India and is in line with its long-term strategy of expanding its footprint and client base globally. The firm said the deal will provide Investcorp with immediate access to the large and growing PE and real estate markets in India, together with an experienced team of professionals.

IDFC Alternatives’ PE and real estate businesses have about $430 million in combined assets under management (AUM). The portfolio includes Parag Milk Foods Ltd, StarAgri Warehousing and Collateral Management Ltd and Manipal Integrated Services.

“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-recognized 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," he added.

The PE business, led by Girish Nadkarni and Gaurav Sharma, has two active funds. It focuses on investing in consumption driven businesses within the healthcare, consumer products, financial services, food and agriculture, media and telecom sectors.

The realty business of IDFC Alternatives, led by Ritesh Vohra, also has two active funds. They offer structured senior credit to the residential real estate sector focusing on projects in Mumbai, Bangalore, Hyderabad, Chennai and the National Capital Region.

“We are entering the Indian market at an important time in its growth trajectory," said Rishi Kapoor, co-chief executive, 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," he added.

As at 30 June 2018, the Investcorp group had $22.6 billion in total AUM.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.