Reliance ARC to receive funding from George Soros’ fund, Blue Ridge Capital

Cyprus-based Dacecroft, a wholly-owned entity of Quantum Endowment Fund backed by billionaire investor George Soros and New York-based investment firm Blue Ridge Capital are picking 21% equity stake in Anil Dhirubhai Ambani Group’s Reliance Asset Reconstruction Company (Reliance ARC).

While Dacecroft, which would pick 11% stake, would come on board as the sole foreign sponsor of the company, Blue Ridge would be putting in its money as another investor. Dacecroft would invest Rs. 11 crores in the company. Blue Ridge would invest Rs. 10 crores through two arms: Blue Ridge Limited Partnership would pick 6.2% stake and Blue Ridge Offshore Master Partnership would hold 3.8% in Reliance ARC.

The second largest investor in Reliance ARC, Corporation Bank, which holds 20.76%, will hold 10% after the induction of foreign investors. The holding of General Insurance Company (GIC) would also come down from 17.65% to 10%.

Read the article in The Economic Times.

Trikona Capital to invest $18 mn in Fortis Healthcare

Trikona Capital is investing to the tune of $18 mn in Fortis Healthcare, a company promoted by the founders of Ranbaxy Laboratories. Earlier, George Soros’ Soros Private Equity Partners and Blue Ridge Capital were believed to have invested $50 mn in Fortis to buy a 10% stake in the company. Fortis has filed for an IPO and intends to raise Rs. 730 crores from the issue.

Fortis needs the funds to further its expansion plans as well as to write-off the debt it had incurred while acquiring Escorts Heart Institute and Research Centre. Fortis Healthcare has chalked out some meg-expansion plans, partly through acquisitions, which will require investments of Rs. 2250 crores by 2010.

Trikona Capital is a real estate-focused private equity firm; it is planning to invest around $1 bn in the Indian market in the next one year. So far, it has made investments of up to $150 million in India. Apart from Fortis, Trikona’s investments include a minority stake in IL&FS Transportation and Networks for $10 million, $20 million in an integrated township project in Thane, $22 million in a residential project in Mumbai and around $55 million in an IT park in Greater Noida. The fund also has partnerships with HDFC and IL&FS to make investments in India.

Read The Economic Times article.