IIFL buys controlling stake in KadaiEshwar Housing Finance for Rs 100 crore
An application for the certificate of registration has now been submitted to the central bank. The new venture is expected to hit the market by January
An application for the certificate of registration has now been submitted to the central bank, and the new venture controlled by IIFL PE is expected to hit the market by January 2019. The NBFC was launched by C. Ilango, former MD at home finance company Can Fin Homes.
With a focus on backing professional entrepreneurs, IIFL Asset Management had launched its new fund — IIFL India Private Equity Fund — in May with a target of around Rs 2,000 crore. Under the AIF business, the IIFL AMC currently manages capital commitments of Rs 20,000 crore. IIFL Asset Management has an AUM of about $5 billion as on March 31, 2018.
Established in 2008, IIFL AMC operates in areas of mutual funds, alternative investment funds, venture capital funds, fixed income securities, and real estate. Ilango confirmed the development, but refused to disclose details.
An IIFL spokesperson, on the other hand, said: “We have done our due diligence with a couple of professional entrepreneurs and their companies and are awaiting approval from regulatory authorities. At this point in time, we would not be in a position to comment on any investment until they are consummated.” During Ilango’s CEO tenure at Can Fin Homes, the loan book expanded five times to Rs 11,000 crore, while profit surged about four times to Rs 157 crore, said one of the persons cited above.
PE investors are increasingly tying up with industry veterans to set up growth platforms in India.
Global investors such as Goldman Sachs and Mitsui Global Investment had backed A. Mahendran, former MD of Godrej Consumer Products, in 2014 to set up his company Global Beverages and Foods. Goldman had also backed Sumant Sinha to set up Renew Power.