UK's PE player 3i to launch $3bn India infra fund

LONDON: With the economic gloom over Europe refusing to lift, UK’s leading private equity player 3i is looking at India with hope. It is set to launch its $3billion (around Rs 14,000 crore) infrastructure fund for India next year. This is its second India fund in two years.

To begin with, the London-headquartered company is exploring possibilities of picking up stakes in companies in ports, power, roads and water management. In fact, the growing infrastructure sector in India is catching the attention of leading investors from across the world. In 2008, 3i had floated its first Indiaspecific fund of $1.2 billion and the company has invested over $505 million in Indian infrastructure.

The PE player, one of the oldest in the UK, already has stakes in companies like Mundra Port & SEZ, Adani Power—both controlled by Ahmedabad-based Adani group—Vijai Electricals, International Tractors and Krishnapatnam Port to name a few. While Mundra Port was 3i’s first investment in India, earlier this month, it picked up 21.1% stake for Rs 1,200 crore in GVK Energy Limited, a wholly owned subsidiary of GVK Power and Infrastructure Limited (GVKPIL), one of India’s leading infrastructure developers.

“We want to work with people who can build world class businesses in India. The main focus area is infrastructure , including power , ports, roads and water management. We are optimistic about the India story ,” Michael Queen, chief executive of 3i, told TOI. Queen says the company plans to hold on to its investments in India for a while.