Religare arm in JV with Milestone for healthcare, education fund
08 April 2009
Religare Venture Capital, a wholly owned subsidiary of Religare Enterprises, has entered into a 50:50 joint venture with private equity firm Milestone Capital for managing a Rs600-crore healthcare and education fund in India.
The joint venture will manage Milestone's current `India Build-Out Fund I` which will focus on investments in healthcare and education. Religare along with its affiliates will also invest Rs60 crore in the fund's existing corpus of over Rs100 crore.
Religare has also deployed some senior medical professionals from its group in effective healthcare delivery and in improving operational efficiencies in the new joint venture.
''Religare has been expanding into all spheres of financial services and we intend to create a large pool of asset management businesses alongside our existing business in transaction services. Private equity has been an area of great interest to us given the management's experience of managing and ramping up businesses at a fast pace,'' Sunil Godhwani, chief executive and managing director of Religare, said.
''Healthcare and education are two sectors which we believe are poised for balanced growth and we have the requisite domain expertise on healthcare which we intend to leverage for larger benefit of investors of the Fund,'' he added.
"We see great synergies in our partnership with Religare and this will be a source of great operational strength, and enhancement of our philosophy of active management", said Ved Prakash Arya, CEO and MD, Milestone.
"The minimum commitment amount will be Rs10 lakhs; the life of the fund will be 5 years, while 18 months will be the commitment period," Arya said.