Ex-3i executive Anil Ahuja Floating $100M India-Focused Hedge Fund
Private equity firm 3i Group Plc’s former Asia head Anil Ahuja has launched a $100 million India-focused hedge fund from institutional investors by the end of this year.
IPEplus Fund 1, which invests in stocks, bonds and currencies, started in October with $10 million of Ahuja’s own capital, he said. Ahuja, who left the U.K.’s biggest publicly traded private-equity firm in February last year, is seeking to raise the money by the year-end, with the first $40 million by June, he said.
Ahuja, 51, is turning to a hedge-fund strategy as returns from private equity in Asia’s third-largest economy slow and the number of unsuccessful exits has exceeded winning ones since 2006. While India’s growth prospects attracted global firms such as Blackstone Group LP and KKR & Co., the average return of private-equity funds investing in the country fell by more than half in 2013 from 7.7 times in 2004, according to researcher Venture Intelligence.
“There are a handful of people who have made money, but the Indian private-equity domain has not performed,” Singapore-based Ahuja said in an interview on Feb. 26. “The right tool kit for India has to be very different.”Source: Businessweek