IL&FS PE to add debt fund, stressed asset-focused investment unit; rejigs management

By Shruti Ambavat

  • 06 May 2015
Reuters

IL&FS Investment Managers (IIML) or IL&FS PE is expanding its business mandate beyond pure equity driven private equity funding to include debt funds and what it calls 'investment banking led private equity transactions for stressed assets'.

The public-listed PE investment advisory firm said its board has approved the new plan and also disclosed senior management changes with top executives of IL&FS coming in with new portfolios.

Current CEO (financial services) of IL&FS Group, Ramesh C Bawa, will take additional charge as managing director of IIML. Shahzaad Dalal will cease to be the vice-chairman at the firm but continue as non-executive director.

Archana Hingorani will continue as executive director and CEO of IIML and look at the existing real estate and growth equity PE business of the company.

Manish Chourasia has been named CEO of Infrastructure Debt Funds business while Milind Patel has been appointed as executive director in charge of the infrastructure private equity and investment banking led private equity transactions.

Patel is currently in charge of the financial services business of IL&FS in his capacity as joint managing director, IL&FS Financial Services Ltd.

Calls made and e-mails sent to the company's spokesperson to get more clarity on the management rejig and investment strategy going forward did not elicit a response.

Meanwhile, the PE firm clocked exits worth Rs 157 crore last quarter to take the total to Rs 1,171 crore (around $185 million) for the financial year ended March 31, 2015. This is up 20 per cent compared with FY14's tally of Rs 975 crore.

IIML's consolidated revenue for FY15 declined 6 per cent to Rs 209 crore while its net profit inched up 1 per cent to Rs 73.02 crore in the same period.

Once India's top PE firm by active assets under management (AUM), IIML lost the position to IDFC Alternatives last year as the latter raised two new funds, including a huge corpus for its new infrastructure fund.

Early this year, it had said it has made first close of its new sector agnostic growth fund Tara India Fund IV at $40 million (Rs 250 crore). The firm is targeting a final close of this fund by the end of this calendar year.

IIML’s scrip rose 1.24 per cent to close at Rs 20.45 a share on the BSE in a flat Mumbai market on Tuesday.

(Edited by Joby Puthuparampil Johnson)