Uncover the Astonishing Rise and Fall of a Major Infrastructure Portfolio in India!
Five years ago,?US-based?private?equity firm? Global Infrastructure Partners (GIP) (GIP) became the latest among a slew of marquee players to enter India’s infrastructure sector.???
GIP?entered the country by?acquiring?the?infrastructure?asset management?business of?multi-asset manager? IDFC Alternatives Ltd?in April 2018.?This, as? VCCircle ?first reported a month before the official announcement, had been a?rare secondaries deal—where a PE firm sells its portfolio to another PE firm.??
In January 2019, IDFC Alternatives would also sell its private equity and real estate portfolio to Bahraini investment major Investcorp the following year. But that is another story for another time.?
On paper, it had been a good buy?for GIP,?and?seemingly?at?the right time.?At that time,?the infrastructure portfolio of IDFC Alternatives consisted?of two funds—the India Infrastructure Fund I and Fund II.?The first fund?raised?$927 million in 2009, while the second fund?mobilized?$900 million in 2014.??
Till then, the two funds had?collectively invested about Rs 9,337 crore ($1.4 billion) in 32 infrastructure companies across roads, power, telecom towers, and renewable energy sectors. The first fund invested in 17 companies and the second fund in 15,?VCCircle?reported?previously.?Of this, while the first fund had made 11 exits, the?second had been fully deployed just before it was acquired.?
In all, GIP?looked set?to become one of the most prominent foreign investors betting on the Indian infrastructure space.?But cut to?May?2023,?the picture looks?rather?different?as?GIP?has?significantly scaled down its portfolio in India.?
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