IL&FS to float $1 bn PE fund with Abu Dhabi firm

IL&FS and Abu Dhabi Investment Company (ADIC) have joined hands to float $1 billion private equity fund to invest in infrastructure projects in West Asia and North Africa.

Both the companies are expected to commit around $50 million to the joint venture.

A top IL&FS executive said the fund would look for investment opportunities in the upstream energy sector, in addition to roads, power and water supply management projects.

"When Indian upstream oil companies go scouting for exploration projects in the region, we would look at coming in as equity partners," the executive said.

The recent months have seen Indian oil majors such as Oil and Natural Gas Corporation, Bharat Petroleum and Indian Oil seeking oil and gas exploration blocks in the region.

Sources said that ADIC would consider investing in the Indian downstream sectors such as power. A potential candidate for such an investment could be the Dabhol power project in Maharashtra.

The Abu Dhabi government-owned gas company, AdGas, had expressed interest in picking up a stake in the project for an undisclosed amount.

In the recent years, West Asian countries have opened up infrastructure projects for private sector participation.

"While countries in the region have been reporting high growth on the strength of petroleum exports, there are huge gaps in infrastructure. The fund will participate in upcoming infrastructure projects in the region, and leverage our strength in project execution and management," the IL& FS executive said.