New York Life arm may pick up stake in IT firm

New York Life Investment Management Llc (NYLIM), the investment arm of New York Life Insurance, is planning to pick up a stake in a Bangalore-based IT services firm.

At present, NYLIM is in talks with the IT services firm and is likely to finalise the deal soon, according to Srinivas Chidambaram, managing director, Jacob Ballas Capital India Pvt Ltd, the investment adviser to NYLIM's two India-focussed private equity funds.

He declined to elaborate on the deal, but pointed out that the NYLIM fund focused on equity investment of $8-$30 million per investment with an average holding period of 3-5 years.

The investment in the IT services company is in line with the investment objective of the fund that seeks to achieve long-term capital appreciation through equity and equity-related investments in companies operating in fields like IT, pharmaceuticals, auto components and infrastructure.

NYLIM India Fund II focuses on providing capital through minority investment to established companies for their expansion programmes.

The total size of NYLIM India Fund II is $130 million, of which 30-35 per cent has been exhausted by investing in companies that include Punj Lloyd, Reliance Energy, ABG Shipyard and Emar-MGF Land Pvt Ltd.

Last week, it picked up 10.71 per cent stake in a Coimbatore-based garment exporter for Rs 36 crore.

NYLIM India Fund I, with a total size of $40 million, invested in Bharti Televentures, Gujarat Pipav Port and Thomson Press between 2000 and 2003.