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Saturday, January 10, 2015

Fund of Funds- IFC Venture Capital Funds

Annual report 2013-14 shares information about the 3 funds managed by IFCI viz. India Automotive Component Manufacturers Private Equity Fund-1-Domestic (IACM-I-D), Green India Venture Fund (GIVF) and India Enterprise Development Fund (IEDF) with an aggregate corpus of `508 crore. The focus of all the three funds was on investments in mid-sized companies involved in setting-up niche business models in respective industry sectors with the prospects of scalability. The above mentioned funds were floated in June 2008. The funds are SEBI registered “Trust” funds. IDBI Trusteeship Services Limited is the trustee to all the three funds and IFCI Limited is the settlor. The funds have received contributions from 38 investors including 9 Banks, 5 Insurance Companies, 2 Financial Institutions and 22 HNIs. All the three funds were fully invested by 2011 and partial disinvestments have also started in these funds. Under these three funds,  investments made in 29 companies. The Company earns an annual management fee @ 2% p.a. on the outstanding fund corpus, of about ` 360 crore as on March 31, 2014. Besides, IFCI Venture is entitled to profit sharing on divestment since it also acted as an investor in all the three funds.

The so called venture funds do not invest in new technology ventures or start-ups.

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