Kotak India Real Estate Fund I today announced the sale of Peepul Tree Properties Private Limited (Peepul Tree Properties), a wholly-owned undertaking, to Tata Realty Initiatives Fund 1 for an enterprise value of Rs. 525-crore (USD 117-million), thereby scripting India's largest RE fund exits. Peepul Tree Properties owns an IT park in the Mumbai suburb of Goregaon, which has been 96 per cent leased to marquee tenants such as Accenture, HP, BNP, Tata AIG, BOB Legal and General, Integron and Prana Studios. On an initial equity investment of Rs. 95-crore, Kotak India Real Estate Fund I has received over Rs. 400-crore from the exit, including internal accruals, a press release issued here stated. The exit has many firsts to its credit. […]

Small Industries Development Bank of India (SIDBI) will launch a venture capital fund of Rs.1,000 crore (USD 220 million) to provide loans to small and medium enterprises (SME) sector, a top official of the bank said Tuesday. “We are in the process of launching the venture capital fund to provide loan to the SME sector. The corpus of the fund will be Rs.1,000 crore,” SIDBI deputy managing director N.K. Maini told reporters on the sidelines of a programme organised by the Conferderation of Indian Industry (CII) in Kolkata. Maini said total disbursements of the bank were expected to grow at a rate of 15 to 20 percent this fiscal. The asset size of the bank, which was Rs.37,000 crore last fiscal, was expected to be about Rs.41,000 crore in the current financial year. “Total loans sanctioned and disbursements were Rs.35,000 crore and Rs.32,000 crore respectively in FY '10,” he said. […]

Largest private equity fund launched in Asia since the global financial crisis; Fund V raised in less than five months; 60 per cent larger than BPEA’s Fund IV which was closed in February 2008. BPEA affiliates now have approximately $5 billion in funds under management, making the group one of the largest dedicated Asian private equity firms. Baring Private Equity Asia (BPEA) has closed the Baring Asia Private Equity Fund V, with $2.46 billion in investor commitments, making it the largest private equity fund launched in Asia since the Global Financial Crisis. BPEA affiliates now have approximately $5 billion in funds under management, making the group one of the largest dedicated Asian private equity firms. Fund V which was raised in less than five months closed at its hard cap and was heavily oversubscribed with more than $1 billion in excess demand. The fund is 60 per cent larger than BPEA’s Fund IV, which was one of the largest regional growth equity funds in Asia when it closed in February 2008 at $1.52 billion. “Further building on BPEA’s successful track record, Fund V will deploy the same investment strategy targeting growing mid-sized businesses in Asia that require capital for expansion, recapitalization or acquisitions. The fund will target companies in a broad range of sectors with operations in Greater China, India, Japan, Singapore, South Korea or South East Asia,” BPEA said. […]

Faering Capital, promoted by former Morgan Stanley executive Sameer Shroff and HDFC honcho Deepak Parekh’s son Aditya Parekh, has raised Rs 830 crore as the first closure of its fund — Faering Capital India Evolving Fund. It is aiming to raise Rs 1,000 crore. “We raised the fund completely from the domestic market and have no immediate plan for any off-shore fund. We are looking at about 10-12 deals through this fund and acquiring a significant minority stake,” Aditya Parekh told Business Standard. Faering plans to add eight people by the end of 2011 and three-fourth of them will join as associates and at the VP level. The possible investment areas include financial services, consumer and retail, telecommunication, technology and internet, media and entertainment, education, healthcare and business services. The fund would assign significant consideration to the investee company’s corporate governance record and the quality of its management team, said a company statement. Faering expects to commit Rs 35-80 crore equity per transaction. “Today, there are significant structural positives in the Indian economy — largely driven by favourable demographics, increasing urbanisation, a growing middle class and a young professional workforce,” it said. […]

Indian private equity firm Milestone Capital Advisors plans to invest $450 million this year, with a focus on the education, healthcare and real estate industries, its managing director said in an interview. The firm, which is planning an initial public offering this year, has about $900 million of assets under management. Private equity investment in India nearly doubled last year to $7.97 billion, from a year earlier, according to Venture Intelligence, a research firm. Companies positioned to benefit from rising spending power in the world's second-most populous country, with an economy growing at about 8.5 percent a year, have been especially sought after by private equity investors. […]