In order to invest in distressed assets, particularly in the roads segment, L&T Infrastructure Finance plans to mop up $500-million ( Rs 2,708 crore) by floating its maiden infrastructure debt fund.
Media reports indicate that the fund would also invest in renewable energy, power and urban infrastructure projects.
It is learnt that the group firm Larsen & Toubro is one of the anchor investors in the new credit fund, and it may deploy a maximum of $300 million ( Rs 1,625 crore) in the fund.
The company began road show for the new fund and is now approaching investors, including insurance companies to invest in the new investment vehicle.
With the launch of this new fund, L&T Infrastructure joined a number of private equity firms that have set up infrastructure dedicated funds in recent months.
Some private equity investors are attracted to infrastructure sector because of strong macro-economic demand and lack of last mile liquidity, analysts opine.
Global investment firm Macquarie Capital was raising a $1.1 billion fund that will invest in infrastructure projects in India, Sri Lanka and South-east Asia.
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