India-based Motilal Oswal Private Equity is planning to raise up to $35m for an impact investment fund in the first half of next year, it is understood.
The new 10-year fund will generally be sector agnostic but maintain a focus on opportunities in food, agriculture, healthcare, education and micro-housing according to the Economic Times.
It said the fund would target returns of between 25 per cent and 30 per cent.
Social or impact investment in India amounted to $45m across 11 transactions during the three months ending September 2012, according to a study by Venture Intelligence.
Of these, three investments were co-investments with regular venture firms.
The impact investment figures were flat compared to the same period in 2011 – which had witnessed $43m across 11 transactions – but significantly higher than the immediate previous quarter, about $22m across nine investments.
The close puts the firm halfway to its $175m target, which Motilal revised down from $200m amid a difficult fundraising market.
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