February 2008
« Jan   Mar »

Contact us

Pvt equity majors line up mezzanine funds for Indian market

After proving to be a bit hit in most Asian markets, private equity (PE) majors are lining up a bevy of ‘mezzanine funds’ for the Indian market. These funds, which are typically debt-dominated instruments with an equity “sweetner”, basically provide medium-to-long term capital to promoters without significant ownership dilution. While from the lenders’ perspective, mezzanine funds offer a measure of downside risk protection, these funds are widely predicted to gain favour with mid-cap Indian firms, where promoters would relish the opportunity of not ceding considerable shareholding while raising funds. ICICI Venture — India’s largest PE firm — is in the process of closing the country’s first mezzanine fund. ICICI Venture’s ‘India Advantage Fund VII’ would offer $110 million in its first round of fund raising, over half of which has already been committed by limited partners. The fund is among the single largest country-focused mezzanine fund in Asia’s emerging markets and the corpus could be scaled up to $1 billion in the second round of fund raising, according to industry sources. Besides, Darby Overseas Investments — the PE arm of Franklin Templeton Investments — has launched the Darby Asia Mezzanine Fund II, which has secured institutional commitments of $300 million and committed investments through an affiliate in Faridabad-based Escorts Construction Equipment Ltd. Kendall Court Capital Partners’ second fund is also said to be eyeing investments in India. […]

Tata picks up stake in BJETS

The Tata Group, which pioneered commercial aviation in India is getting back into the airlines business. The Tatas have struck a deal with Singapore-based BJETS to launch a private jet company. BJETS has not revealed the size of Tata Group's investment in the company. However, the Tatas will buy 50 private jets for USD 600-million from BJETS. The company expects to start flight operations in May out of Singapore. In India, operations are expected to be based out of the new Hyderabad international airport. The Vice Chairman of the Tata Group is clearly excited about the deal. “BJETS will set a new standard in the way we fly and do business in Asia. The Indian Hotels Company is very proud to be an investor in this landmark venture. This will further underline the luxury experience which the Taj is known for.” Krishna Kumar says. (Money Control) […]