Actis has teamed up with the Government of Singapore Investment Corporation (GIC) to invest $77 million each in Indian power developer GVK Energy.
GVK, a wholly owned subsidiary of GVK Power and Infrastructure Limited, developed India’s first independent power project and will use the funding to further construct and operate power plants in India. UK-headquartered emerging markets investor Actis made the investment from its global infrastructure fund, Actis Infrastructure II, which closed in September 2009 on $750 million. The investment in GVK follows Actis’ debut deal in India’s infrastructure sector in April when the firm invested $77.5 million for a 35 percent stake in TRIL Roads, a holding company and fully owned subsidiary of Tata Realty and Infrastructure.
Earlier this week, Actis agreed to sell its 63 percent stake in Paras Pharmaceuticals to UK-listed Reckitt Benckiser Group for approximately $724 million. Actis invests in infrastructure businesses in Africa, Latin America and South East Asia with a focus on power and transport. The firm currently has $4.7 billion of funds under management.
Last week, GIC teamed up with global private equity heavyweights Kohlberg Kravis Roberts and TPG Capital to purchase Morgan Stanley's 34.3 percent stake in China International Capital Corporation (CICC).
Financial terms were not disclosed, but media reports suggested the transaction would be valued at $1 billion.
Government of Singapore Investment Corporation's alternative assets exposure dropped to 25 percent for the year to March 31, 2010 from 30 percent a year earlier, according to its latest annual report. While GIC said in its report it “continued to invest steadily and divest selectively” in alternative assets, valuations in its real estate and private equity portfolios lagging public equity valuations were responsible for its exposure to the asset group falling over the year.