The government today cleared foreign fund house Lazard's proposal to invest Rs 125 crore in its Lazard India Growth Fund (LIGF), which will focus on mid-sized firms in the country.
LIGF will be registered with market regulator Securities and Exchange Board of India (Sebi) as a venture capital fund and the LIGF Trust plans to invest heavily in the mid-cap companies, stopping just short of acquiring controlling stakes, official sources said.
The fund's focus will be on infrastructure, outsourcing and consumer-driven companies, apart from other growth sector areas.
However, the fund would not undertake investments in the real estate sector, sources informed.
With its investment, the international financial advisory and asset management firm Lazard Group's investment holding company Lazard Mauritius will hold about 25 per cent of the equity shareholding in the fund.
Further, Lazard plans to incorporate a new company in India, Lazard India Advisors (LIAPL), which will manage the LIGF fund under an agreement to be executed between the fund trustee and LIAPL.