UTI AMC to set up PE fund for core sector

The country’s leading fund house, UTI Asset Management Company, is entering the private equity space. It has joined hands with HSH Nord Bank of Germany and Shinsei Bank of Japan to float $600 million private equity fund which will focus on infrastructure sector.

All the three partners have already made a commitment of $25 million each towards the fund. UTI has turned its focus on the infrastructure. In the last calender year, the financial institution launched a mega infrastructure mutual fund, targeting investments in listed companies. The total fund requirement of country’s infrastructure is pegged at $380 billion over the next five years. The PE fund comes at a time when UTI is planning an IPO.

In the last calender year, infrastructure and real estate sector had attracted close of $2 billion investments. Sources said this PE fund would focused on infrastructure companies and SPVs and rest of the funds would be raised over next two years.