Mumbai-based firm Aditya Birla Private Equity has started raising its first fund, with a target of $250m.ABPE will commit 20 per cent to the fund, which will focus on investments in Indian companies, whilst the remaining capital will come from domestic and overseas investors.
The private equity firm is a new venture for the Aditya Birla Group, which has committed $100m to the new entity to 'launch a series of funds over time'.
Bharat Banka, managing director and CEO, Aditya Birla PE, said, 'Aditya Birla Private Equity is not just another fund; it is operated like a business. The focus of this business is to leverage knowledge base and expertise of the team to create winner companies in the unlisted mid-market; it will also look at select investments in listed companies. The business has access to the widespread Aditya Birla lineage and an extensive network of institutional, regulatory and business relationships in India and abroad which can be applied to replicate success in portfolio companies. The current scenario of the market is an ideal time to build winner companies that require active operational value addition from private equity.'
According to the firm, ABPE has identified certain sectors which can take advantage of the current stage of India's exponential growth potential. These include niche emerging sectors, skilled ancillary businesses, infrastructure enablers and consumption led growth.
Aditya Birla Group has a strong presence across various financial services, including life insurance, fund management, distribution and wealth management, security based lending, insurance broking and private equity.
Source: Alt Assets