IL&FS Investment Managers Ltd announced in early July the raising of a US$500 million infrastructure fund to invest in transport and energy projects.

According to sources, Archana Hingorani, chief executive officer of IL&FS Investment Managers, said the fund manager started raising money for its latest infrastructure fund late last year from global limited partners, or LPs (investors in private equity funds).

She added that they are targeting a first close for the fund during this financial year and a final close in the next financial year.  

The fund will also allow co-invest in projects promoted by LPs.

IL&FS will not only pump equity in transport and energy, but also in ports, logistic and other projects.

According to sources, Sanjay Sethi, managing director and chief executive at infrastructure advisory firm Nestor Consulting India said:

“The market has undergone a lot of change and today, people are toying with different frameworks, as returns have, by and large, been muted in the space. Hence, you see some of the large LPs taking the direct investment route or investing in platforms that allow them co-investment opportunities.”