Actis Plans To Exit Its First PE Investment

Actis is reported to exit its private equity investment in India. The global private equity firm had invested $25 million in India in the year 2008.

In 2008, $25 million was invested by global private equity firm Actis. This investment was done for developing a residential cum retail project in Bangalore. This remains their sole realty investment in India.

Though Actis has not many investments in India, they have investments in many cities falling in various continents. The group is present in Asia, Africa and Latin America.

Though the firm had invested $25 million for developing the residential and retail project, only $7.5 million was used for the development of this project. The remaining amount was used by Vaishnavi Group, the Indian partner of the PE Firm.

Vaishnavi Group has invested the remaining amount in various projects. The group is reported to be asked by Actis group to sell out the stakes of them to exit from the fund.

Actis has so far invested only $25 million in the real estate sector. However their overall investment in the country would be over $1 billion. The firm has investments in various sectors like automotive, healthcare, infrastructure and so on.

The PE Firm hopes to target the emerging markets after the exit. While the officials were not available for the comment, the officials of Actis decline to comment.

The joint venture of Actis and Vaishnavi Group is located at Yeshwantpur. This is one of the fastest developing Bangalore outskirts.

India witnessed maximum numbers of PE investments in 2005-08 period. 12 billion was invested in this period. Thus this period is rightly considered as the booming period of PE in India.

However since then the PE investments in India are falling. Moreover it is the period for these PERE funds to exit from their investments. As per the report of Cushman & Wakefield, PE investments have dropped by 28 percent in 2012.