IFCI, Sycamore Ventures launch $500 mn infrastructure fund

Financial institution IFCI Ltd, in association with global investment firm Sycamore Ventures, today announced to set up a USD 500-million (about Rs 2,250 crore) infrastructure fund.

As the principal sponsor to the fund, IFCI has committed to invest 10% of the total capital of the fund with a minimum commitment of USD 50 million, the country's oldest financial institution said in a statement.

The fund will raise capital from domestic and overseas investors and will be registered with Sebi as a venture capital fund, it said.

Foreign subscribers will invest in the fund through a Mauritius fund with domestic subscribers investing directly in the fund, it said.

The fund intends to consummate investments in equity or equity related instruments of infrastructure projects or holding companies, with sustainable cash flow and potential for significant long-term capital appreciation, it said.

The fund's focus includes all forms of power generation, transmission and distribution, gas distribution, coal mines, roads, railways, ports and airports, it said.