Investcorp, which is in the process of acquiring the private equity business of IDFC Alternatives, has clubbed all investments that are less than $40 million and is looking for a potential buyer of the portfolio
The investment firm is keen on big ticket and control deals in India. “Investcorp wants to focus on larger deals and is therefore looking to sell off smaller investments at IDFC PE. It is not keen on managing smaller investments," the first person said.
IDFC is also looking to sell its asset management business as part of its divestment plan. Initially it was keen on selling its entire alternative asset management to a single buyer but sold its infrastructure investment business separately to US-based Global Infrastructure Partners (GIP).
GIP has bought out the entire infrastructure investment team of IDFC Alternatives but has not taken any exposure in the investments of the firm. In order to offer an exit to investors in the infrastructure fund, the platform investments in the infrastructure sector are being clubbed under one umbrella.
The diversified entity will either be listed or sold to another strategic or financial investor to provide an exit.
The PE business is now being sold separately to Investcorp which is also buying the real estate investment business of IDFC Alternatives.
Like GIP, Investcorp will also be absorbing the private equity and real estate businesses of IDFC Alternatives without taking exposure in their respective portfolios.
The real estate investments of IDFC Alternatives include White City project by Rajesh LifeSpaces in Mumbai, and the portfolios of Bengaluru-based developer Nitesh Estates and Pune-based developer Vascon Engineers.
IDFC Alternatives offered to provide an exit to its investors from the third fund amid talk of sale to InvestCorp.
Consequently, some of the investors have sold around half of the portfolio in terms of market value to CDC. The remaining investors will continue to stay invested. CDC is a development finance institution owned by the UK government.
The acquisition of the private equity and real estate businesses of IDFC Alternatives will allow Investcorp to gain a foothold in India. Investcorp currently invests in North America, Europe, West Asia and North Africa.
Investcorp invests in the mid-market segment and has so far invested $36 billion across 150 private equity transactions.
The company is also an active investor in US commercial real estate equity and high-yield debt. Since 1996, the investment firm has made more than 300 property investments totaling more than $11 billion in value.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!