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Venture capital GVFL Ltd, which launched its seventh fund on Saturday, announced the first closure of Rs 380 crore in December 2011.
The fund, known as Golden Gujarat Growth Fund-I, is targeting a corpus of Rs 1,000 crore. The Gujarat Government is the sponsor of the Fund with a commitment of Rs 200 crore (20% of the Fund). The other investors include LIC of India with a commitment of Rs 100 crore and major financial institutions and leading banks in India, according to a statement here.
GVFL is in the process of raising the balance amount of Rs. 600 crore from overseas investors such as Pension funds, Fund of Funds, family offices, sovereign funds and from domestic investors. The fund expects the final closure by early 2013. It was originally formed in January 2011 and achieved initial closure within one year.
GVFL would start investing from the fund in April 2012. The fund manager envisages providing an overall return in excess of 20% (IRR) to its investors. The investments would be a mix of equity and quasi-equity instruments with investment horizon of 4-6 years.
The fund is a pan-India fund with Gujarat in focus. Its investment focus will be in infrastructure and energy. These include areas like renewable energy (wind, solar and biomass), industrial and urban infrastructure (with focus on industrial parks, projects in the Delhi-Mumbai Industrial Corridor (DMIC), Special Investment Zones (SIRs), SEZs, waste water and solid waste management, affordable housing, green buildings etc.) and clean technology (with focus on energy efficiency, energy storage, advanced fuels etc).
GVFL Ltd (formerly Gujarat Venture Finance Ltd) was created in 1990 as a World Bank initiative to spread the venture capital culture in India. The company is owned by State Public Sector Undertakings (56%), CDC–UK (9%) and others (35%).
So far, GVFL has created six funds and successfully liquidated three of them with a track record of 75 investments and 57 exits, most of which have gone on to become successful enterprises.
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