R-Cap to try a hand at PE business, will raise $1 Billion
Printer Print Email Email
Bangalore: Anil Dhirubhai Ambani Group's financial arm Reliance Capital (R-Cap) is planning to try a hand at private equity business in India. The firm is looking to raise $1 billion (over Rs 4,600 crore) from foreign investors for supporting the venture. The fund will be operational by December 2008, when the capital raising plan is concluded, said Sam Ghosh, chief executive officer, R-Cap. "We have received necessary approvals for our private equity business. Now, we are in the process of raising funds. This fund will be used for all types of equity investments in the country," Ghosh said. R-Cap recently stepped into institutional broking and asset reconstruction. R-Cap plans to apply to the Dubai International Financial Centre (DIFC) in the UAE for approval of the asset management business of its subsidiary, Reliance Capital Asset Management. On getting the approval, the company could begin its fund management operations in Gulf Cooperation Council (GCC) countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). Recently, the company received an approval to expand its fund management business into the UK and Mauritius. The next targets will be Malaysia and Indonesia, said Ghosh. "Reliance Money, another R-Cap subsidiary, is planning to spread its business into new geographies, such as Ireland, the UK and Indonesia as well as the GCC countries. We already have presence in Southeast Asia, West Asia and Africa. Reliance Life Insurance, the risk arm, is looking to invest abroad for which we are scouting for a partner. The company, including all its subsidiaries, plans to generate 15-20 percent of its revenue from the international business, which is below one per cent now," said Ghosh.

siliconindia