ICICI Venture's Ambitious Fundraising Plans
ICICI Venture, the private equity arm of ICICI Bank, has unveiled plans to raise a staggering three billion dollars from two of its funds, comprising both equity and a dedicated real estate fund.
Fund Allocation and Investor Base
A senior executive at ICICI Venture revealed that the company aims to secure $1.5 billion from each of these two funds. The investment influx is expected to primarily originate from the United States, Europe, Canada, and West Asia, underscoring the global appeal of India's booming real estate sector.
Investment Strategies Outlined
- Equity Fund: This fund will adopt a diversified investment approach, focusing on vital knowledge economy sectors that drive innovation and growth.
- Real Estate Fund: With a targeted corpus of $1.5 billion, this fund will concentrate on both Residential Properties and Commercial Properties, capitalizing on the sector's unprecedented growth trajectory.
Context and Market Significance
- The $1.5 billion real estate fund represents ICICI Venture's second foray into this space, following the successful closure of a $550 million real estate fund, the first in a proposed series of real estate-focused funds.
- Real estate currently dominates the private equity investment landscape in India, accounting for approximately 30-40% of all deals.
- Notably, Goldman Sachs' one billion dollar real estate fund, established in 2006, remains the largest fund of its kind in India, with Credit Suisse also having announced (though subsequently unblessed by the RBI) plans for a similar one billion dollar real estate fund in the country.