Named Indian American Capital Partners, the fund would be the largest equity fund in the country.
Resource Financial is being advised by Brescon Corporate Advisors on setting up of the fund. Russell R Stepke, president and principal of Resource Financial, said 50 per cent of the resources for the fund would be raised in the US, while the balance would be raised from domestic institutions.
"We would be keen to invest in select industries, including information technology, business process outsourcing, media, health care, pharmaceuticals, auto components, chemicals, power generation and fast moving consumer goods," Stepke added.
The fund would be actively managed by both domestic and US fund managers. Stepke said, "Along with our Indian alliance, we will be exploring investment opportunities in large and globally competitive Indian firms."
Resource Financial has written partnership agreements with 14 US private equity/buyout funds managing $45 billion of committed capital. It acts an advisor to all the 14 funds and has been mandated by them to source and structure investment opportunities globally.
Stating that time is ripe for outside funds in India, Stepke said the fund would bring business synergy. "We expect a return of 30 per cent to 35 per cent return on equity fund," Stepke said.
He also added that the equity market in India was bullish and there is enormous potential in the market. "If this fund is successful, it would open the doors for other pension and insurance funds to invest in India."
