IDFC Alternatives second 'India Infrastructure Fund' fully subscribed

IDFC Alternatives, the private equity arm of IDFC Ltd, has raised Rs5,500 crore ($900 million) for its second fund targeted at infrastructure assets in India. This includes a commitment of $90 million from its parent IDFC and remaining $810 million from third party 'Limited Partners' (LPs).

This is one of the single largest funds raised across investment themes in the recent past, the PE firm said, adding that the fund was fully subscribed and closed after hitting upper end of the target.

IDFC Alternatives, one of India's largest multi-asset class fund managers, announced the final closing for India Infrastructure Fund II (IIF-II) at its hard cap of Rs5,500 crore (about $900 million).

Investors in IIF II, which include global institutional investors from North America, Europe and the Middle East, have also pledged significant additional capital towards co-investment opportunities.

"We are very pleased with the high quality and marquee investors that IIF-II has attracted and are proud of the speed with which IIF II has been subscribed to, especially given the difficult economic and financial conditions that prevailed during the majority of our fund-raising period," said M K Sinha, managing partner and CEO, IDFC Alternatives.

IDFC Alternatives had raised $927 million from Indian and international institutional investors in its debut infrastructure fund - India Infrastructure Fund (IIF) - which closed in June 2009.

"IIF II will continue with a similar investment strategy of investing in core infrastructure assets in India covering both under construction and operational assets and with proven relationships and partnerships that have created value," said Aditya Aggarwal, partner, infrastructure, who co-led the fund raising.