Business Standard has an article about ICICI Ventures raising a new $1.5 bn fund. The interesting aspect of the fund seems to be an option to list the fund on the London Stock Exchange. This innovation will help expand the investor base for real estate private equity funds. In the backdrop of a slowdown in investor appetite for Indian assets and more specifically Indian real estate, it is imperative of fund managers to use every avenue possible to raise capital.
In the current market, when most listed real-estate investment vehicles are trading at a big discount to NAV, it is clear that the option is unlikely to be exercised in a hurry. Investors will be served well to note that till the fund is listed, the investment will remain illiquid and any divestment will likely be at a substantial discount. Of course, even if it is listed, the discount to NAV could be hefty
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