Actis Contemplating Exit from Indian PERE Fund
Background
Actis Private Equity, a global private equity firm with a presence in Asia, Africa, and Latin America, is considering exiting its first and only Private Equity in Real Estate (PERE) fund in India.
Investment Details
In 2008, Actis invested $25 million in a residential and retail project located in Bangalore, India's IT hub. The investment was managed by Vaishnavi Group, a local partner.
Exit Strategy
According to sources, Actis has requested its Indian partners to sell its stakes, paving the way for the firm's exit. Post-exit, Actis aims to focus on other emerging markets. Officials from Actis Group declined to comment, while Vaishnavi Group officials were unavailable for comment.
Investment Portfolio in India
Although the realty sector investment stands at $25 million, Actis has a total investment of $1 billion in India, spanning sectors like automotive, healthcare, and infrastructure.
Project Details
The residential cum retail project, developed in Yeshwantpur, a rapidly emerging suburb in Bangalore, utilized $7.5 million of the $25 million investment. The remaining amount was allocated by Vaishnavi Group for various other projects.
PERE Investment Trends in India
The 2005-2008 period saw a surge in PERE investments, with global PE firms investing $12 billion in Indian realty. Most of these investments are now nearing exit.
Current Market Sentiment
According to Cushman & Wakefield, PE investments in India witnessed a 28% decline in 2012 compared to the previous year. Global PE firms have shown dwindling interest in Indian realty due to sluggish property sales, leaving some investments stuck.