Infra companies experience a significant funding gap in periods of sectoral/regulatory instability, loan constraints, volatile equity markets and weak investor sentiments. This coupled with asset backed focussed debt market limits avenues available for long term funding for infrastructure projects in India.
Private Equity fills this void by being a source of patient capital supplemented with value creation by guidance and practical support.
To address this requirement, L&T Infra Finance has created a private equity asset management platform that provides asset management services to channelize a pool of funds from domestic and international investors into the development of Indian infrastructure. Such investments are generally in the form of equity, preference shares and structured instruments that supplements the local entrepreneur’s capital to complete the creation of the asset or provide limited to full exit opportunities to the initial investors.
Our private equity involvement with the portfolio company extends beyond funding and involves creation of work streams together with the company to improve processes, corporate governance, strategic thinking, support for marketing / finance and changing the growth trajectory through intelligent and tactical inputs for customer acquisition and M&As. Our approach to money management is about investing growth capital, enabling corporate growth and then capitalising through an exit opportunity.