Bahraini investment manager Investcorp has launched in India by acquiring the private equity and real estate investment management operations of IDFC Alternatives.
Combined assets under management of the IDFC businesses being acquired are approximately $430m.
The private equity business currently has two active funds. The team focuses on investing in grassroots consumption driven businesses within the healthcare, consumer products, financial services, food and agriculture, media and telecom sectors.
"Our first direct investment into the Indian market is a major milestone for our business, which also marks our focused expansion into Asia"
The real estate business also currently has two active funds. They provide structured senior credit within the residential real estate sector with a focus on projects in Mumbai, Bangalore, Hyderabad, Chennai and the National Capital region.
The deal, which has already received the required regulatory approvals in India, is expected to close on January 31.
"Our first direct investment into the Indian market is a major milestone for our business, which also marks our focused expansion into Asia," saidMohammed Alardhi, Executive Chairman of Investcorp.
"IDFC is a well-recognised brand and a fantastic addition to Investcorp's portfolio from an investor perspective. This acquisition will be instrumental in our plans to grow our investments into the country as part of our wider Asia strategy," he added in a statement.
"We are entering the Indian market at an important time in its growth trajectory," said Rishi Kapoor, Co-Chief Executive Officer of Investcorp.
"Rising incomes, strong growth and stable policies including reforms like the national Goods and Services tax regime make India particularly attractive for investment. We see great potential for the Indian market and have ambitious plans for the years ahead."
Investcorp did not reveal how much it paid for the acquisition. Since its inception in 1982, Investcorp has made over 175 corporate investments in the US, Europe and the broader Middle East and North Africa region, including Turkey.