LICHFL Asset Management plans to raise Rs 500 cr

LICHFL asset management company, a subsidiary of LIC Housing Finance plans to raise Rs 500 crore of capital for its first fund christened as LICHFL Urban Development Fund.

“The fund will make investments in companies involved in development of mid income affordable housing, income yielding micro infrastructure assets including Industrial & IT Parks, SEZ, other allied segments through equity & equity-related instruments,” said a release issued by the company.

“Looking at the increasing need for equity for successful financial closure of projects, the LIC Group has ventured into the private equity space with its maiden offering, the ‘LICHFL Urban Development Fund’.  Our AMC arm intends to follow with a series of other funds to cater the needs of increasing urbanization in the fast growing economy,” said AK Sharma, Chief Executive Officer, LICHFL AMC.

The fund aims to achieve balanced returns by inbvesting in a diversified portfolio, both geographically and by asset class.  It will invest with known promoters with good track record and will create incentive for JV partners by linking part of the profit share with performance, thereby aligning interest with investors. Investments will be in locations which have identified drivers of economic growth and adequate depth by way of demand.

saikat.das@network18online.com