IL&FS started its media friendly notations early in 2010 with news of it getting its infrastructure portfolios into active play and getting ready for supporting the India fund and other drives to run PE into infrastructure and the larger deals that are now happening inthe PE spacee. Today's mint also mentions its new acquisition of $440 million or INR 2068 Crore Saffron PE fund. While larger funds mean lower values being ind emand instead of the 2-20 regime much in focus always in the industry. IIMl is also a listed providing it the option to access retail equity.
IL&FS Investment Managers currently run $1.6 billion in real estate out of its $2.8 billion corpus and only $700 million in infrastructure and current conversations around the industry continue to focus on construction and related stocks in the midcap space like IRB and IVRCL. The mint story mentions the earlier pruning in no. of funds in 1998 and the 2001 dot bust but PE consolidation is much a function of changing administrative structures outside the running funds and the onl change will be in the quantum of funds available and the number of deals taking place.
While banks also face curbs in real estate lending real estate PE has also found very few sponsors till date because of the lack of exit esp in a downturn.
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