India's ICICI Bank is set to launch a $150 million to $200 million
fund in a few weeks that will be invested in small and medium
companies, said a Reuters report based on sources. The new fund will
be separate from ICICI's private equity arm, ICICI Ventures that
manages more than $2 billion.
“Regulatory approvals required for the fund are currently being
processed and we would be able to provide an update once these have
been granted and the fund raising process is completed,” an ICICI
spokesman is understood to have told Reuters an emailed statement.
The bank is expected to kick-start the fund raising exercise sometime
next week. The news agency quoted the sources saying that ICICI will
raise the money primarily from institutional investors and top
The small and medium companies spans sectors such as jewellery,
textiles and engineering that typically lean on founders for equity
and banks for debt. These sectors usually fall below the threshold for
a private equity fund, while venture capital firms focus on start-ups
in software and back offices.