MUMBAI: Apis Growth Fund II, a private equity fund managed by Apis Partners, it is investing $110 million to acquire a minority stake in L&T Infrastructure Debt Fund (L&T IDF), the company said in a statement.
L&T IDF is a subsidiary of L&T Finance Holdings, and is involved in refinancing operating infrastructure projects in India. Of the total investment amount, 70% will be in the form of growth capital for L&T IDF and 30% will earmarked for purchase of shares from existing shareholders of subsidiaries of L&T Finance Holdings.
Apis’ investment in L&T IDF will support the growth of its loan book across a number of infrastructure sub sectors in India such as renewable energy, roads, power transmission, airports and ports. The investment will also strengthen its capital structure and further its technology and digitisation strategy.
L&T IDF currently looks at private sector and PPP (public private partnership) infrastructure projects.
“Our IDF business has built significant strengths in core areas of renewable energy, road and transmission financing, resulting in a high quality loan book and consistent returns. This partnership with Apis is a reflection of the value creation that the Indian infrastructure financing space offers to investors looking for sustainable returns in the long term," said Dinanath Dubhashi, managing director and chief executive officer at L&T Finance Holdings Ltd.
The refinancing unit had a loan book worth around ₹8,000 crore as of 31 December, across 94 projects. The company has had 0%non-performing assets (NPAs) since inception, the statement said.
“With India projected to be the fastest growing infrastructure market over the next five years, we are delighted for the fund to invest in L&T IDF. The fund’s investment will support the company in its mission of facilitating infrastructure growth, a critical factor for the development of industry, agriculture and trade in emerging markets. The company’s mission is fully aligned to Apis’ own objective of assisting in the deepening of the financial sector as a necessary ingredient for the promotion of economic development in growth markets," said Matteo Stefanel, co-founder and managing partner at Apis Partners LLP.
Apis Partners is a private equity asset manager that supports growth stage financial services businesses in Asia and Africa. Apis Growth Fund II investors include leading institutional investors, developmental financial institutions, global banks and insurance companies, sovereign wealth funds, family offices and HNWIs across Europe, North America, Asia, Africa and Latin America.
The London-based PE firm was founded by Matteo Stefanel and Udayan Goyal in April 2014.