Pg. 5

1. 20th Anniversary
Published by
Asian Private Equity
AVCJ’s INDIA e-letter & Venture Forum
2007
Vo l u m e 2 , N u m b e r 1 9 , O c to b e r 1 5 , 2 0 0 7
Hong Kong
w w w . avcj. c o m
14-16 November 2007
Macquarie, IFC to launch $1bn infrastructure fund
Macquarie Bank and World Bank investment arm The Macquarie-IMF investment vehicle joins the
In This Issue:
International Finance Corp (IFC) plan to launch a $1 billion growing number of funds focused on Indian infrastructure.
infrastructure fund targeting India and neighboring They include the $1 billion 3i India Infrastructure Fund Macquarie, IFC to launch $1bn
infrastructure fund ...1
countries in South Asia. Macquarie is to take a 90% stake launched in September and a $5 billion fund jointly
in the fund’s asset management company, with IFC holding founded by Blackstone Group and Citigroup that was KKR, Cerberus reportedly plan India
presence ...1
10%. announced in February this year.
According to an IFC statement, the proposed Deutsche Bank in $425m property
KKR, Cerberus reportedly plan India
Macquarie India Infrastructure Opportunities Fund will investment ...3
presence
invest in areas that include: telecom towers; water and
Lehman, Och-Ziff invest $200m in hotel
Kohlberg Kravis Roberts and Cerberus Capital are
waste treatment; roads; airports; ports; rail; and assets venture ...3
reportedly planning to set up separate operations in the
relating to the generation, transmission and distribution
StanChart charges up Powerica with $50m
subcontinent. Local media, quoting unattributed sources,
of power. The closed-end fund, which is to be registered deal ...3
said that KKR had contacted several local law firms in its
in Bermuda, is subject to approval by the boards of
Movers & Shakers
quest to seek assistance in the establishment of an India
Macquarie and IFC.
office. Bhuta joins Thomas Weisel’s fund of funds
venture ...5
KKR has so far only closed one deal in the country: last
Norwest expands with Shah in Mumbai ...5
year’s $900 million acquisition of Flextronics Software,
which marked India’s first leveraged buyout transaction.
IFC leads $82m funding round in South
Meanwhile, Cerberus
Indian Bank ...6
is reportedly in the final
Warburg, ICICI head for exits ...6
stages of appointing a
Helion invests in Hurix for e-learning
CEO for India. The firm
outsourcing ...7
has not yet finalized a
News Briefs ...7
deal in the continued >> p3
Bridge construction in Bangalore
1

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2

3. India e-letter
p1 >> continued
country yet, but had been named as a potential suitor for project in Mumbai, while ICICI Venture acquired a 25%
INDIA e-letter
a few local companies, including low-cost airline Deccan stake in the developer’s land plot in Thane for $25 million.
Aviation. Lodha says it has more than 25 million square feet of land
published fortnightly by
By comparison,Warburg Pincus is among the country’s across 27 projects in Mumbai. It claims to have a land bank
biggest private equity investors, having established a of more than 4,000 acres.
presence in the country more than a decade ago. It has
Lehman, Och-Ziff invest $200m in hotel
invested more than $1 billion over 80 deals. Meanwhile,
venture
over the past year alone, Blackstone Group closed five
ASIAN VENTURE CAPITAL JOURNAL
Lehman Brothers and New York-based hedge fund Och-
deals worth a total of about $700 million.
Founded in 1988
Ziff Capital Management Group have agreed to invest www.avcj.com
Deutsche Bank in $425m property deal $100 million each in a hotel venture. Mumbai-based
Future Capital Holdings is backing the venture, which
Deutsche Bank has invested $425 million in Mumbai-
Managing Editor Chairman & CEO
plans to build a chain of four- and five-star hotels in the
based real estate developer Lodha Group. The lender
Paul Mackintosh Dan Schwartz
country. It will also invest in other hotel projects in various
– Germany’s biggest –
India e-letter Editor
Indian cities.
will take a 25% stake in a Publisher
Yvonne Chan
Allen Lee
Future Capital, the financial services arm of India’s
special purpose vehicle
US Editor
largest retailer, Pantaloon Group, reportedly plans to
(SPV) founded by Lodha.
Rebecca Fannin Vice President, Administration
deploy the $200 million over the next 12 months and raise
In turn, the SPV will launch Harmony Heung
Circulation Manager
a further $300 million from investors over the next three
three real estate projects
Sally Yip
to five years. Future Capital manages private equity fund
in the Mumbai suburbs of Advertising Sales
Designer Anil Nathani
Indivision and two real estate funds: Kshitij and Horizon.
Thane and Dahisar.
May Cheng Christopher Cheng
India has an insufficient number of hotel rooms to
The projects, which
accommodate the growing needs of business and leisure
cover a total of 70 acres,
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three years.
investment in property,
according to Lodha. Last
The Publisher reserves all rights herein. Reproduction in whole
StanChart charges up Powerica with
year, JP Morgan Chase or in part is permitted only with the written consent of AVCJ
$50m investment Group Limited. India e-letter is delivered in QuVu format, which
invested $60 million in
is licensed from and used by permission of Qiosk.com, INC.
Lodha Bellisimo, a luxury Standard Chartered Private Equity has invested $50
Lodha Bellisimo Copyright © 2007
residential high-rise million in Mumbai-based Powerica, a continued >> p6
3

4. Kishore Biyani Vineet Nayyar Roopa Purushothaman
Founder & CEO Vice Chairman, Chief Economist
FUTURE GROUP Managing Director FUTURE CAPITAL HOLDINGS
Managing Director & CEO
PANTALOON RETAIL TECH MAHINDRA
Keynote
speakers
India 2007
Asian Private Equity & Venture Forum
3 – 5 December 2007, Mumbai Global perspective, local opportunities Confirmed speakers (partial list)
Doug Coulter Ashish Dhawan Lindel Eakman
Sumir Chadha
Rajesh Agarwal
Head of Private Senior Managing Director - Private Equity
Managing Director
Managing Director
India’s economy has expanded at more than eight percent each year for the past four years. This growth has Equity Asia Pacific Director UNIV. OF TEXAS
SEQUOIA CAPITAL
AIG
been driven largely by the steadily increasing demand of India’s consumers for new and better goods and LGT CAPITAL CHRYSCAPITAL INVESTMENT
INDIA
PARTNERS LTD MANAGEMENT CO.
services, creating great opportunities for private equity investors in the retail and real-estate sectors as well as in
healthcare, education and associated industries.
Meanwhile the country’s structural challenges mean that demand for new travel and transport infrastructure
continues to grow, coupled with a growing need for power, water and sanitation facilities for its burgeoning
cities.
The combined efforts of energetic and ambitious promoters, and seasoned and farsighted investors are creating Jay V. Jegannathan
Archana Hingorani
Steven Enderby E. David Ellington William Greene
a growth phenomenon that few can have failed to notice. Join over 400 of the most active and successful India Managing Director
Executive Director
Partner Trustee & Managing Director
EVOLVENCE CAPITAL
IL&FS INVESTMENT
ACTIS Commissioner MPM CAPITAL
fund managers, their limited partners and advisors in Mumbai this December to get the full story. MANAGERS
SFERS
Global series sponsor Principal lead sponsor Co-lead sponsors
Co-sponsors
Ronil Sujan Anil Thadani
Atul Kapur Luis Miranda Harsha Raghavan
Regional Head – Asia, Chairman
Managing Partner President & CEO Executive
Life Sciences SYMPHONY
INDIVISION IDFC PRIVATE Director, Principal
RABOBANK INVESTMENT
EQUITY Investments
INTERNATIONAL MANAGERS LTD
GOLDMAN SACHS
Supporting
Public relations partner Media partners Organised by
organisation
Contact Matthew Swainson for more details T: +(852) 3411 4950 E: Matthew.Swainson@incisivemedia.com Visit www.avcj.com/avfindia for continuous speaker updates
4

5. India e-letter
MOVERS & SHAKERS
Bhuta joins Thomas Weisel’s fund early 2006, after hiring Sreenivasulu “Srini”Vudayagiri as accomplishments to Norwest. Previously, he was at
director and head of asset management for its wholly eBay, where he was senior director of strategy and
of funds venture
owned subsidiary, Thomas Weisel International. ventures, responsible for evaluating acquisitions and
Vudayagiri, previously with Actis and Intel Capital, investments for the online auction site globally. At
Pranav Bhuta has left the private equity desk at Ernst &
was also tasked to evaluate fund of funds opportunities eBay, he also led venture investment in the Americas,
Young in India to join a new venture by San Francisco-
in India. However, it is unclear how far this progressed, racking up such hits as classified listings site Craigslist
headquartered merchant banking group Thomas
as is the fate of the Thomas Weisel Partners India and mobile chat service Skype. He was also a CFO
Weisel Partners.
Opportunity Fund. With a target size of up to $500 and director of operations for
Based in Mumbai, Thomas Weisel Global Growth
million, the fund was reportedly to lead the firm’s Baazee.com, a large shopping
Partners has run a fund of funds
investment strategy in the country. Earlier this year, website in India. Rounding
and secondary investments
there were reports that indicated the fund was still in out his resume, Shah was
practice for many years out of
formation, although the firm has written off its balance a manager at KPMG India’s
Silicon Valley and Boston. Its
sheet a $15 million investment in a fund raised by the corporate finance arm, where
India venture marks its latest
private equity arm of Infrastructure Development he handled M&A transactions
move into Asia.
Finance Company. Thomas Weisel Partners declined in the tech, media and telecom
Bhuta said he “will be
to comment. sectors.
fo c u s e d o n i nve s t m e nt s
Norwest has earmarked
i n p r i va t e e q u i t y f u n d s
Norwest expands with Shah in Mumbai 10% of its recently raised
investing into India, which
Niren Shah has joined Norwest Venture Partners as $650 million fund for India,
will be primarily growth-stage Thomas Weisel
Niren Shah
managing director based in Mumbai. The move is part where it has made five direct
focused funds.” He added: “I
of the Silicon Valley firm’s commitment to expand its investments. Firm managing partner Promod Haque
am very excited about this new opportunity to work
operations in the country. said he expects to hire several additional investment
in this new role.”
Shah will focus on investments on digital media, professionals in the country. “India has developed
Thomas Weisel Partners has made several moves
mobile communications, and consumer Internet into a world-class technology and global investment
to set up operations targeting Asia, particularly India.
companies. He brings a stellar background of venture destination,” said Haque.
The firm opened a Mumbai office in Nariman Point in
5

6. India e-letter
IFC leads $82m funding round in South
maker of power generating equipment.The size
p3 >> continued
Subscribe
Indian Bank
of the stake is reportedly between 10%-15%. Now
AVCJ e-letters
Powerica is one of India’s leading maker of generator World Bank investment arm
setups – commonly called gensets – which are self- International Finance Corp Edited and written by the staff of the Asian Venture Capital
Journal Weekly and Private Equity Asia, AVCJ e-letters bring
contained and dedicated electrical generation systems. Its (IFC) has led an $82 million more focused private equity news than ever before. In concise
bulletin format, to match the pace of Asia’s accelerating growth
gensets are used by companies in the IT, textile, chemical investment in Kerala-based South Indian Bank. IFC invested and the exploding private equity markets of the region, AVCJ e-
and construction industries. $17.6 million for a 4.8% stake. It was joined by mutual letters are offered to our charter subscribers on a complimentary
opt-in basis.
The privately-held company plans to use the funds to fund manager Fidelity Investments, Bangalore-based UTI
AVCJ offers 7 separate e-letters - now available or forthcoming: —
build a manufacturing facility near Mumbai and upgrade Ventures and New York-headquartered hedge fund Blue
Now Available
existing plants. Powerica operates eight production Ridge Capital, which each invested about $12.7 million.
facilities in the country. Other investors that took part in the funding round
In September, Goldman Sachs and GE Power jointly include US hedge funds DE Shaw and Moon Capital
invested in Sudhir Gensets, a Gurgaon-based generator Management, which acquired respective stakes of 1.6%
Australia and New Zealand India Japan
setup manufacturer. The financial details of the deal were and 1.8%.
not publicly announced, but Indian media reports indicate The deal is subject to regulatory approval. After the Available 2007
that between $60 million and $75 million was invested for transaction is finalized, 47.4% of the bank will be owned
a stake of about 10%-15%. by foreign institutional investors, slightly below the 49%
foreign ownership cap.
China (in English) Middle East
Warburg, ICICI head for exits
Warburg Pincus has reduced its stake in Gujarat-based
plastic and textile manufacturer Sintex Industries, selling Hedge Funds Real Estate
a 14.3% stake in on the open market. The private equity
AVCJ–ASIA’S
firm netted $142.4 million from the transaction, which
PRIVATE EQUITY NEWS SOURCE
lowered its stake to 12.1%.
Warburg in 2005 had acquired a 17.9% stake in Sintex
for $18.7 million. It was followed by an open tender offer
at Rs 286.4 per share ($6.82 at recent exchange rates),
compared to the Rs 350 ($8.90) per share price offered by
Powerica generator setup
For more information, please visit www.avcj.com
Warburg in the block deal. At the end of June 2007, it held
or email AVCJsubscriptions@incisivemedia.com.
26.4% of Sintex. continued >> p7
6

7. India e-letter
NEWS BRIEFS
Helion invests in Hurix for e-learning
The shares were sold to a group of foreign
p6 >> continued
outsourcing
institutional investors comprising HSBC, Lehman
Brothers, Merrill Lynch, Master Trust Bank of Japan and India’s Helion Venture Partners is pursuing the growing
US hedge fund Batterymarch Financial Management. outsourcing opportunities in e-learning and publishing,
3i has raised $500 million for the first close
Sintex is listed on the Bombay Stock Exchange. with its $5.1 million investment in
of its India Infrastructure Fund. Launched in
Meanwhile, Mumbai-based ICICI Venture sold its Mumbai-based Hurix Systems. August, the fund has a total target size of $1
remaining 6.9% stake in Deccan Aviation – the owner billion. 3i said it hopes to raise an additional
Helion was the sole investor
$500 million from investors in the Middle East,
of low-lost carrier Air Deccan – through a block trade in the Series B round, according
US and Europe.
on the National Stock Exchange. ICICI. The shares were to Kanwaljit Singh, the firm’s
Paris-based global luxury brands giant Louis
sold for $25.3 million through a block deal on National managing director. Fast-growing
Vuitton Moet Hennessy (LVMH) is reportedly
Stock Exchange. Hurix was founded in 2000 and has planning to launch an emerging markets
In 2005, ICICI Venture paid $50 million for a 19% a footprint in Asia as well as North private equity fund to invest in brands and
retail chains. The size of the fund was not yet
stake in Deccan. Its stake was diluted to 14% after the America and Europe. Its client list Kanwaljit Singh
known, but the company is said to have plans
airline’s IPO last year. In April 2007, ICICI sold a 3.25% includes multinationals such as to allocate up to $700 million for India, where
stake of its holding to UBS Securities Asia for $8.14 Pearson Learning Group, McGraw-Hill Group, DHL Express, it will target jewelers, traditional ayurvedic
medicine producers and spas. It will also focus
million. In the following months, ICICI reduced its LG Electronics, Johnson & Johnson and Pepsi.
on real estate acquisitions for luxury hotels and
shareholding further to just under 7%. “The availability of high quality and creative talent, spas. The fund is slated to be launched in the
next 12 months.
combined with the technology skills in India makes it a
compelling proposition,” said Singh. He will join the board Citigroup, Merrill Lynch and two hedge funds
along with Helion’s CFO and investment advisor Natarajan have invested a total of about $160 million in
the Multi Commodity Exchange (MCX) of India
Ranganathan.
– the country’s largest commodity bourse. The
Singh, a former director and co-head of The Carlyle US-based banks each acquired a 5% stake, while
Group’s India venture operations, founded Helion last year hedge funds Passport Capital of San Francisco
and London’s GLG Partners purchased stakes of
with Walden International veteran Rahul Chandra and tech
3% and 2% respectively. The investments value
entrepreneurs Sanjeev Aggarwal and Ashish Gupta. MCX at $1.06 billion.
Aside from investments in outsourcing, Helion’s
Delhi-based brokerage Almondz Global
team in India invests in Internet, mobile, and technology
Securities said it will par tner with UK
companies from its $140 million, India-focused venture independent investment bank Noble Group to
launch a private equity fund targeting India’s
fund. Its deal with Hurix fits well within the firm’s portfolio
infrastructure sector. The target size of the fund
Air Deccan
of 10 companies in the software, voice SMS, online travel,
was not disclosed.
and outsourcing industries.
7

8. Asian Private Equity
20th Anniversary
& Buyouts Forum
Asian Private
Equity & Conrad Hong Kong
Venture Forum
Asian Venture Capital
Hong Kong & Tech Forum
14-16 November 2007 Island Shangri-La
Global perspective, local opportunities
Keynotes Confirmed Speakers (Partial List)
‑ Lead sponsors ‑ Global series sponsor
global titans
HAMIlton JAMEs DAVID rubEnstEIn JAMEs CoultEr stEPHEn PAglIuCA JonAtHAn M. nElson
President & Co-Founder & Founding Partner Managing Director Founder & Chief Executive Officer
tpG cApitAl, lp BAin cApitAl providence eQuity
Chief Operating Officer Managing Director
‑ Co‑sponsors ‑ BlAckstone Group the cArlyle Group pArtners
Asian Private Equity Founding Fathers Economist briefing
lEwIs rutHErFurD stEPHEn s. roACH
Dr. VICtor k. Fung VICtor CHu AnIl tHADAnI
Managing Director Chairman
Chairman Chairman Chairman
‑ Legal sponsors ‑ ‑ Insurance sponsor ‑ inter-AsiA venture morGAn stAnley AsiA
li & FunG / First eAstern symphony investment
mAnAGement
prudentiAl AsiA investment Group mAnAGers limited
Institutional Investors
‑ Knowledge partner ‑
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‑ Public relations partner ‑ ‑ Media partners ‑
‑ Organized by ‑
PHIlIP bIlDEn MArk DElAnEy JonCArlo r. MArk MArCus sIMPson
Head, Global Private Equity
Managing Director CIO Sr. Portfolio Manager
Qic
hArBourvest pArtners AustrAliAnsuper calpers
An incisivemedia company
8

9. Asian Private Equity & Buyouts Forum Asian Venture Capital & Tech Forum
Confirmed Speakers (Partial List) Confirmed Speakers (Partial List)
rAlPH PArks k.y. tAng
DAnIEl CArroll MICHAEl kIM AnDrEw lIu MAArtEn ruIJs tED sCHlEIn lIP-bu tAn DAVID CHAo yosHIto HorI JAMEs H. PAul AsEl
boEttCHEr
Chairman - Asia Chairman &
Managing Partner - Asia Partner Managing Partner CIO Managing Partner Chairman Co-Founder & Managing Partner Managing Partner
oaktree capital Managing Partner
tpG capital mBk partners cvc Asia pacific kleiner perkins Walden Globis capital nokia Growth partners
& CEO, Asia General Partner General Partner
(hong kong) Affinity equity partners
ccmp capital Asia caufield & Byers dcm partners
international Focus ventures
stEPHEn trEVor X.D. yAng PEtEr AMour HArJIt bHAtIA kEnny blooM nAVIn CHADDHA norMAn CHEn CHArlEs C. CoMEy AsHIsH guPtA MElIssA guzy
nICHolAs bloy MArk CHIbA
Managing Director & Managing Director and Co- Chief Executive Officer Managing Partner CEO Managing Director Partner, Healthcare Managing Partner Managing Director Managing Director
Founding Partner Group Chairman &
Co-Head of Private Equity Head of Carlyle Asia Partners AiF capital credit suisse Asia vision mayfield Fund Fidelity Asia ventures morrison & helion venture vantagepoint venture
navis capital partners Partner
morgan stanley the carlyle Group Foerster llp partners partners
the longreach Group
private equity Asia
rEbECCA JAMEs MI
MArlEEn groEn brIAn koo kAIsEr kuo rICHArD lI
ArCHAnA CHrIs Hsu grAnt kEllEy MEng Ann lIM PErry HA
AsHIsH DHAwAn
MACkInnon
HIngorAnI Director of Corporate
Chief Executive Officer CEO & Managing Partner Group Director, Executive Director
CEO & Principal & CEO Partner Founder &
Sr. Managing Director
Greenpark capital lG venture investment Digital Strategy legend capital Asst. Professor, university of Development,
colony capital Actis
Managing Partner Managing Director
chryscapital Executive Director
ogilvy & mather hong kong Fmr. Bureau Greater China
Abax Global capital Asia pacific dFJ Athena
il&Fs
Chief, Tokyo and Beijing, cnn Google
Advertising
MuHAnnAD JEAn ErIC sAlAtA JoHn sun ClAuDIA FAn AyAz ul-HAQuE
robErt swIFt bo sHAo QuInn tAw
luIs MIrAnDA robErt PEtty HEnry b. ngyuEn MICHAEl sCown
QubbAJ MunCE
Founder & CEO Executive Director General Partner, matrix Managing Director
CEO Executive Director
President & CEO Managing Partner Managing Director,
Managing General
Baring private equity new horizon capital eplanet ventures
menA infrastructure partners
Managing Director china media
idFc private equity clearwater capital Managing Director Treasury
Partner
Asia
Gulf capital Fund Chairman, novamed exchange
iBm venture capital
partners idG ventures vietnam intel capital
pharmaceuticals
Group
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AnDrEw yAn
CHrIstoPHEr A. Doug HussEIn MArk roPPEll AnDrEw wHAn
FErnAnDo DAVID nott sIng wAng sonny wu gAry rIEsCHEl nEIl sHEn
lAskowskI lowEnstEIn kHAlIFA
gAsPAr Managing Partner
Partner Partner, Private Equity
Regional Leader Partner Founder Founder & Founding Managing
cadwalader,
Managing Director sAiF partners
kpmG tpG Growth Gsr ventures
clifford chance
President Partner Managing Director
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citigroup private equity council mvision Wickersham & taft llp
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