Morgan Stanley's private equity unit has invested $37.5 million (25.2 million pounds) in an unlisted firm in its first transaction in India, and a top official said the firm expected a busy 2009 as the need for capital drives deals. Morgan Stanley Private Equity Asia took a "significant minority" stake in Indian castor oil maker Biotor and was focusing on healthcare, education, financial services and consumer products, said Srinavasa Rao Aluri, managing director of its India PE unit. "We have the dry powder, a good team in place and a healthy pipeline, which makes the coming year look interesting," he told Reuters. "I do hope the activity will be feverish for us next year."   more »

Asian hedge fund Altima India Master Fund is looking at picking up 14.39 per cent in AIM listed The Indian Film Company. Altima India Master Fund is interested in acquiring 7,913,500 ordinary shares in the company, which represents 14.39 per cent of the company's issued share capital. Altima India Master Fund is a controlled undertaking of Altima India Master Fund Limited and both companies are domiciled in the Cayman Islands. The fund is advised by Altima Partners Limited, a UK partnership, authorised and regulated by the FSA.   more »

UK based private equity firm 3i will retain presence in India even as an ongoing global restructuring programme prompts the firm — said to be the world’s largest listed PE outfit — to close down its key Hong Kong and Shanghai offices. Although the move is aimed at pruning costs, sources said that it also underscores the growing importance of the Indian market compared with other markets in Asia. The move to continue operations here also comes against the background of 3i’s recent plan to cut its global headcount by about 15% owing to the tough market conditions. The offices that will continue to operate include Mumbai and Singapore. The Mumbai office will coordinate the firm’s investments for companies across the country, while Singapore will be the hub for the whole of Southeast Asia. 3i Singapore will be responsible for investments in Singapore, Indonesia, Malaysia and Thailand.   more »

Mumbai based non-banking financial company (NBFC), Tata Capital plans to raise $500 million as its first corpus of its private equity (PE) venture. With expansion such as investment banking, retail banking, corporate finance and retail loans on the mind, the NBFC will approach both domestic and international investors for the fund. The company is also leveraging its tie-up with Japan's Mizuho Securities to offer combined services such as investment banking, broking, PE and wealth management and thus strengthen its PE business. "Market conditions are tough and there are mid-tier companies that need funding for their expansion plans.   more »

IL&FS Investment Managers (IIML), the private equity subsidiary of infrastructure financing major IL&FS, has closed its $225-million growth equity fund. In mid-2007, IIML had effected the first closure at $150 million and it brought about the final closure at $225 million recently. Industry sources said IL&FS Investment Managers were planning to raise a $400-million fund, but had to close it at $225 million, given the current market conditions. IIML is among the earliest venture capital and private equity players in India and, during the course of the last 14 years, it has raised and managed nine funds, ranging from sector-specific funds like real estate to sector-agnostic private equity funds. It currently manages and advises investments in excess of $2 billion across all sectors.   more »

Silicon Valley venture capital firm Mayfield Fund has established a new vehicle, Mayfield India I, its first fund dedicated to investments across India. Commitments of $110m have been received.The fund will focus on mid-market companies in the technology, infrastructure and consumer sectors. The India team has so far invested in six India-domiciled companies: technology providers Tejas Networks and Paymate, consumer service providers Consim Info and Genesis Colors and infrastructure providers Geodesic Systems and Servomax.   more »

Indian private equity firm IL&FS Investment Managers Ltd has raised $895 million for a new realty fund, tapping global investors despite the global financial turmoil and falling property markets. The firm, one of India's oldest private equity players, is also pulling money together for the first tranche of an Asia infrastructure fund, which it hopes to close in about a month, Archana Hingorani, chief executive told Reuters in an interview. The realty fund, the second IL&FS fund focussed on the real estate sector, exceeded its initial target of $750 million. It has commitments from two sovereign wealth funds, U.S pension funds and university endowments, she said on Tuesday.   more »