Bahrain’s Investcorp launches in India by acquiring IDFC businesses

Bahraini investment firm Investcorp has launched operations in India through the acquisition of IDFC business units, it announced on Wednesday.

Investcorp bought the private equity and real estate investment management businesses of IDFC Alternatives Limited, a subsidiary of Mumbai-listed IDFC Limited for an undisclosed sum.

Combined assets under management of the IDFC businesses being acquired are approximately $430m.

The private equity business currently has two active funds. The team focuses on investing in grassroots consumption driven businesses within the healthcare, consumer products, financial services, food and agriculture, media and telecom sectors.

The real estate business also currently has two active funds. They provide structured senior credit within the residential real estate sector with a focus on projects in Mumbai, Bangalore, Hyderabad, Chennai and the National Capital region.

The deal, which has already received the required regulatory approvals in India, is expected to close on January 31.

The acquisition – which also includes retaining the existing team of around 20 people – will provide Investcorp with access to the private equity and real estate markets in India, a statement said.

It is also part of the firm’s long-term strategy of expanding its investment footprint and client franchise globally.

Mohammed Alardhi, executive chairman of Investcorp said: “This acquisition will be instrumental in our plans to grow our investments into the country as part of our wider Asia strategy.”

Rishi Kapoor, co-CEO of Investcorp added: “We are entering the Indian market at an important time in its growth trajectory. Rising incomes, strong growth and stable policies including reforms like the national Goods and Services tax regime make India particularly attractive for investment.

“We see great potential for the Indian market and have ambitious plans for the years ahead.”