biggest publicly traded buyout and venture capital firm,
the UK-based 3i Group will set up a $1-billion infrastructure
fund to invest in Indian power, ports, airports and road
projects in early-stage and mature stages of infrastructure
fund is the first one being established by the 3i Group
within the framework of its agreement with India Infrastructure
Finance Company Limited, announced earlier April, this
says will invest at least $250 million in the unlisted
fund subject to shareholder approval, while third party
investors will be invited to contribute the rest.
Yea, chief executive, 3i Group, said, "Today''s announcement
is another very positive step in the development of our
infrastructure business globally and also further accelerates
our growth in Asia and India in particular."
firm says it has 10 investment and advisory professionals
in Mumbai to manage its investments in India and locate
new investment opportunities. Since 2005 the UK private
equity group has invested $325 million in India in real
estate, media and other sectors.
Indian government now estimates that investment in infrastructure
will need to increase from 3.5 per cent of GDP at present
to 8 per cent of GDP in 2012 and anticipates around $320
billion in infrastructure investment over the next five
years to ease bottlenecks constraining economic growth,
which in the last three year has averaged 8.6 per cent.
Queen, infrastructure managing partner, said, "India
offers tremendous growth opportunities for infrastructure
investment. 3i, through its global network and within
the framework of the strategic partnership with IIFCL,
is optimally positioned to source attractive investment
opportunities in the Indian infrastructure market and
to deliver value to its shareholders and investors in