CDC Group, the UK-based private equity fund-of-funds operator, is to invest $250m (£126m) in to three Indian infrastructure and real estate funds, joining a growing list of foreign groups targeting the sectors.
The UK government-backed emerging markets specialist is teaming up with two Indian groups ?? Kotak and Infrastructure Development Finance ?? and UK-based Actis, to make its foray into the market.
Private equity investment in India has boomed over the past year, growing nearly threefold to $6.2bn in 2007 compared with a year earlier, according to figures from Thomson Financial.
Under its investment model, CDC adopts a ??fund-of-funds? approach, investing in private equity funds that are targeting infrastructure or real estate.
It plans to invest $100m in IDFC??s India infrastructure fund and $100m in the Actis India Real Estate Fund. It will also inject $50m in Kotak India Realty Fund.
