Mumbai: Infrastructure Development Finance Company Ltd (IDFC) announced that it has decided to get a strategic partner to take over the management of its fund of funds business, IDFC Capital. The announcement comes after the fund of funds has been unable to raise money since September 2009. The statement said IDFC will continue to honor its commitments to the funds into which investments have already been made and, effective 1 April, the existing team of investment professionals will be free to pursue opportunities outside IDFC.
The IDFC fund of funds team based in Singapore headed by Veronica John has broken away to pursue business separately, said a person familiar with the development. A spokesperson for IDFC declined to comment. According to a 15 March report by Private Equity International (PEI), the fund of funds manager has parted company with its Indian parent IDFC and will continue to fund raise under its new name, Serasi Capital.
With the seed money from IDFC, the fund had made four investments. In 2010, the firm scaled down the fund size to $350 million from $500 million, due to a challenging fund-raising environment.