LIC Housing appoints CEO of Rs 500 cr venture fund

LIC Housing Finance’s (LICHF’s) diversification juggernaut is finally rolling with a proposed venture capital fund. The LIC subsidiary is set to raise its first funds of around Rs 500 crore from September 2010.

To start with, Arun Goel has been appointed as LIC Venture Fund’s CEO. Goel is the former CEO of Venture Capital arm of Dewan Housing Financial.

“We will first have a team in place, and then start our operation soon,” said Managing Director and CEO of LIC Housing Finance, RR Nair.

LICHF venture capital fund was scouting for a domestic partner, but decided to go solo. The firm is slated to start raising funds from September.

LICHF’s parent company and country’s largest life insurer, Life Insurance Corporation of India (LIC), will be one of the partners. LIC has invested in a number of venture capital funds. It is one of the promoters of ICICI Ventures. It has also committed funds to Renuka Ramnath’s Multiples Asset Management Fund. LIC has invested around Rs 50-100 crore in each fund.

According to the insurance investment guidelines, insurance companies are not allowed to invest more than 10 per cent of the venture fund size.