Dawnay Day to launch equity funds

Britain-based Dawnay Day Financial Services Ltd has finalised its plans to launch three private equity funds for channelising investments in India and also float an asset management company (AMC) in the country with a capital of $8 million.

The first private equity fund will be established in the US through a 50:50 joint venture with a New York-based fund-of-funds, which will begin resource generation programme in December 2005.

Dawnay will launch the second fund for investors in Europe and the third a global fund specifically for investments in distressed assets, said Alok Vajpeyi, vice-chairman and managing director of the Indian arm of Dawnay Day called Dawnay Day AV Financial Services Pvt Ltd.

Dawnay will become the 12th foreign mutual fund to launch operations in India, which had Rs 1,95,784 crore of total assets under management with mutual funds. Dawnay is also in talks with a few budget hotels for its proposed domestic real estate fund.

"We are looking at budget hotels that will cater to the ordinary businessman, instead of the luxury hotels. The Indian arm will act as an advisor to the real estate fund," Vajpeyi said.

Dawnay has also hired a senior real estate consultant as part of its plans for the real estate fund. It is also planning a domestic private equity fund.