ICICI Venture, the private equity wing of ICICI Bank, plans to raise three billion dollar from its 2 funds including equity and a real estate fund.
A senior ICICI Venture executive told that they will raise $1.5 billion from both these funds.
The ICICI Venture executive said the company expects to generate most of the investment for the fund from the US, Europe, Canada and West Asia.
“The equity fund will invest in all vital knowledge economy sectors. The real estate fund will invest in residential in addition to commercial properties,” he said.
The $1.5 billion real estate fund is the 2nd such offering from ICICI. The company has just closed a five hundred fifty million dollar real estate fund, the first in a proposed series of real estate funds by the firm.
Real estate is the hottest sector for private equity investment in the country, and accounts for 30- 40 % of the deals. At present, Goldman Sachs one billion dollar real estate fund is the largest fund investing in real estate in India. The US investment banking firm had set up this fund in 2006.
Credit Suisse had also announced plans to set up a one billion dollar real estate fund in India. However, the proposal was not cleared by the RBI.