Aditya Birla Capital Advisors on a High Note

March 11, 2010 - PRLog -- Come March 31, Aditya Birla Capital Advisors will close Fund I, its debut fund with a corpus of Rs.800 crore. In January, it announced the first closure of Rs.675 crore. It is the first PE arm of an Indian corporate group to close the debut fund successfully this year in such a short time.

Tata Capital and Reliance Equity Advisor are expected to close their respective funds over the next six months. More High Net worth Individuals and institutions are flocking to Aditya Birla Capital Advisors to make it a grand success. The Birla group PE arm has committed to bring in 20% to the fund.

From its earlier seed capital fund Naman Capital, it had invested in three entities viz., V-Mart, Bombay Stock Exchange (BSE) and Core Projects & Technologies—in the first half of 2008. These will be transferred in Aditya Birla PE soon.

The fund plans to invest in sectors that are related to infrastructure, education and healthcare given their immense potential for returns. That is to say, to circumvent the long gestation period, the fund will invest in component suppliers to each of these sectors which will get their returns much faster. Medical diagnostic companies, for instance, will be an ideal choice to invest. These companies, through contractual arrangements, occupy space in built up hospital space and invest only in equipments. The PE firm is expected to make 12-15 investments from the Fund I.

Aditya Birla Private Equity will be adopting a sector agnostic investment style. Within this style, it has identified and prefers certain sectors that it feels are better positioned to take advantage of the current stage of India’s exponential growth potential. Officials are basing their investment plans on consumption led growth, driven by a combination of rising per capita income and credit expansion, infrastructure enablers and niche emerging sectors etc.

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