Baer Capital Partners, a Dubai-based funds management company, plans to raise $500 million to invest in real estate and infrastructure in India, the world's fastest growing major economy after China. The firm will begin investing in India in the second quarter of next year after tapping investors outside India in early 2008, Alok Sama, president of Baer Capital, said in an interview in Mumbai. “It's critical for India's economic development that infrastructure is increased sharply,'' said Pauli Laursen, who manages $800 million at Sydinvest Asset Management at Aabenraa in Denmark and holds shares of Indian companies including Larsen & Toubro Ltd. and Bharat Heavy Electricals Ltd. “India needs money from all over for its infrastructure.'' India requires half a trillion dollars of investment in infrastructure including roads and power plants during the next five years as it aims to lift growth in its $906 billion economy to 10 percent by 2012. Baer Capital joins JPMorgan Chase & Co., 3i Group, Blackstone Group and Citigroup Inc. in planning to invest funds from overseas in Indian companies building roads, ports and electricity plants. […]