Milestone Capital Advisors, the real estate venture capital fund promoted by Ved Prakash Arya, is planning to launch a private equity fund with a corpus close to Rs 600 crore. The announcement will be made in a few weeks. The PE fund, the first from Milestone's stable, will focus on sectors such as education and infrastructure. "Right now, I am bullish on these two sectors as there is lot of scope for companies to expand and reach a mass base," said Ved Prakash Arya, managing director, Milestone Capital Advisors. Its fourth real estate fund — Milestone Domestic Fund Part-II — has raised Rs 430 crore and will close shortly. The fund house is proposing to raise Rs 500 crore from this fund. Despite the rough market weather, the fund house's track record and investment strategy have helped in getting investor commitments, Arya said. Realty funds have been finding it difficult to raise funds from high networth individuals (HNIs) and institutions owing to a credit crisis in the US, the impact of which has been felt in India as well.   more »

With the economy slowing down Indian players are looking at setting up distressed funds. Edelweiss Alternate Asset Advisors (EAAA), an arm of Edelweiss Capital is looking at launching a $200-million distressed asset fund. Other players, who already have an ARC licence, are also looking at setting up these funds. Till now, only foreign funds have been active players in this market. Siby Antony, executive VP and head-distress investments, EAAA told ET: “We propose to put in a vehicle over the next 6-9 months. We should have everything in place by December. We are not looking at retail NPAs, but SMEs and large corporates. We hope to create value in potentially viable units,” he adds. EAAA is initially looking at $200 million fund which could go up to $400 million depending on investor demand. Edelweiss is in the process of applying to the Reserve Bank of India for an asset reconstruction company (ARC) licence. Mr Antony said initially they would go with a single asset and once ARC is approved, they would go for portfolios. Others, who are in the market to raise funds, include Vision Global which has launched a $200-million fund.   more »

Intel Capital, the venture capital unit of Nasdaq-listed Intel Corporation, on Thursday said it will invest US$17 million in three Indian companies and said it is bullish on the country's investment prospects. The three companies identified for investment are online travel portal Yatra.com, event-oriented social network BuzzInTown.com and advertising company Emnet Samsara Media. "We are rapidly investing in opportunities that we find suitable and are excited about investment prospects in the country," Intel Capital President Arvind Sodhani said. The funding for the said investment would come from the US$250 million Intel Capital India Technology Fund. The fund has already invested US$125 million so far in the country, Sodhani said, adding that apart from investing in technology companies, the fund would also focus on alternate sources of energy.   more »