Dalmia group, Dubai firm float fund of funds

Nesil Staney
Mumbai
October 19, 2005

The Dalmia Group and Evolvence Capital of Dubai have raised a fund of funds which would invest in private equity and venture capital funds in India. The fund of funds, has allocated about $10-30 million for investments in private equity, infrastructure and real estate funds, and has already committed capital to four private equity funds: GW Capital, Barings, IDFC and IL&FS. Many institutional and high net worth investors in the Middle East, including prominent business families are said to have invested in the fund.

“The oil-rich investors in the Middle-East are pure equity investors, unlike others who make equities a part of their portfolio. Now that they have turned their focus from the western markets to Asia, they would definitely be the major players in Indian market in future,” says Gaurav Dalmia, director of the Dalmia Group. Private equity funds have done well in the in the last four years and has given a return of about 40 per cent per annum.

The fund of funds is being run by Delhi-based, V Jegannathan and Paresh Thakker, who have worked previously with Merrill Lynch and Infinity Ventures, respectively. Evolvence Capital is a Dubai based alternative investment firm with backing from prominent families in the Gulf.

Khaled Al Muhairy, CEO of Evolvence Capital, said: “We expect Indian private equity to out-perform global benchmarks given the strong economic growth in this country. We expect good funds to return upwards of 25 per cent per annum in the coming decade. Investors like us who have a long term mindset are very bullish,” said Muhairy.

The Dalmia Group has been investing for over a decade in private equity, real estate and secondary markets, and has co-sponsored the GW Capital fund. It has interests in various industries ranging from cement, steel, IT and engineering. The group also promotes various other funds like Gujarat Ventures, Kshitij retail fund and Infinity Venture fund, an India centric Fund, which primarily invests in technology scrips.