Carlyle to invest $250 mn in Indian tech firms

New Delhi, August 17: Global private equity investor The Carlyle Group unveiled plans on Thursday to invest $250 million in India over the...

New Delhi, August 17: Global private equity investor The Carlyle Group unveiled plans on Thursday to invest $250 million in India over the next three years, saying it had already invested $20 million of that amount in six Indian companies.

"The investments are part of our Technology Venture Fund Asia which will invest $750 million in Asia and Australia, not including Japan, over the next three years," Tony Jansz, managing director, Asia, Internet and Technology Fund, told a news conference.

The Washington DC-based Carlyle said the Asian fund would build a portfolio of mainly strategic investments in technology projects that supported telecommunications infrastructure, wireless communications, the Internet and software applications.

Carlyle had already invested in software firm Convergent Software, education solutions company Educomp Datamatics, E-commerce portal ITNation.com, medical imaging technologies firm Manmar Technologies, web-based recruitment portal Placements.com and Ritechoice Technologies, a financial markets software solutions provider.

Carlyle Group founder and managing director David Rubenstein told the news conference the group’s returns from investments had averaged 35 per cent a year since it began operations 13 years ago. The Carlyle group, which has more than $10 billion under management, has invested about $600 million in Asia so far.

The Technology Fund would now focus on suitable investments in India, China, Korea, Taiwan, Australia, Singapore and Hong Kong. “The focus of the new technology venture group will be on strategic technology infrastructure investments to enable Asia-based technology businesses to develop from their current stage through to IPO or international expansion,” he stated.

Carlyle’s new technology venture group is supported by an international network of “strategic services’ managed by an Asian team of experienced technology experts. The dedicated management unit will provide business support in six core areas – comprising corporate governance, legal and accounting services, marketing and public relations, human resources and information technology services – to underpin business growth of Carlyle portfolio companies.

Story continues below this ad

Rubenstein said that its dedicated team has significant experience in technology venture throughout the Asia-Pacific region. The 14 professionals hired to date have previously placed over $ 600 million in over 50 transactions in Asia. “The combination of international finance and management support will be focused on delivering world-class support to critical technology and internet infrastructure developments and E-commerce initiatives across Asia,” he added.

The Carlyle group has over 13 years of global fund management experience and originates, structures and acts as legal equity investor in management-led buy-outs, strategic minority equity in investments equity private placements consolidations and build-ups and growth capital financing.