UK private equity player Henderson plans India fund

NEW DELHI: Global private equity major Henderson Global Investors is planning to set up a $700-m India fund.Henderson Global Investors, which manages over £67.7bn in assets worldwide as on 31 December ’05, is conducting roadshows across the world to raise money for the new fund.

“The company is talking to investors to raise an India fund in the range of $600-700m,” said a source close to the company. The fund is likely to make big-ticket investments in sectors like media & entertainment and finance.

“The size of the investments is expected to be in the range of $40-60m for the new fund,” the source added. Within the financial sector, the fund will target regional, unlisted banks. The fund house had spent 50% of its Asia Pacific fund on Indian companies.

Henderson Asia Pacific Equity Partners is a $210-m fund, which invests across Asia in $5-30m buyout and expansion capital transactions. The fund house has invested in Jubilant Organosys, HT Media and Hindustan Sanitaryware & Industries. It had also invested in Bharti Tele-Ventures, from which it has exited.

Henderson is the latest fund to join the growing list of global private equity players that are setting up India-centric funds. Old Lane and Draper Fisher Jurvetson have set up India-focused funds.

Experts say that this trend is only going to catch on. “There are a few global players that may have an odd investment in India as of now, but are planning India strategies and in some cases, are about to set up an India office,” said Deepak Kapoor, executive director, PwC.

In fact, a lot of global funds, which are not setting up separate India funds are increasing their India allocations within the global funds.

“The number of global players eyeing the private equity space in India has shot up tremendously and almost all of them have now earmarked specific allocations for India,” said Sanjay Bansal, partner, Ambit Corporate Finance.