|North Haven India Infrastructure Fund
|PE- Infrastructure focused
|SEBI AIF CAT II
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
Morgan Stanley Investment Management Private Limited is a private company incorporated on 12 October 1993. It is classified as a subsidiary of foreign company Morgan Stanley and is registered at Registrar of Companies, Mumbai. Directors of Morgan Stanley Investment Management Private Limited are Mohan Lakshminarayanan, Vineet Janardan Sekhsaria.
Raja Parthasarathy – Raja Parthasarathy is a Managing Director and Co-Head of Morgan Stanley India Infrastructure. Prior to joining Morgan Stanley in 2014, Raja was a partner at IDFC Private Equity. He earlier worked with Jet Airways, UBS, Goldman Sachs and Lehman Brothers. Raja received an MBA from INSEAD, an MA in Economics from Tufts University and a BA from Hamilton College.
Shyamsundar Gurumoorthy – Shyamsundar Gurumoorthy is a Managing Director and Co-Head of Morgan Stanley India Infrastructure. Shyam joined Morgan Stanley in 2014 and has 21 years of experience. Prior to joining the firm, Shyam was a founding member and partner at IDFC Private Equity where he led a number of investments in a range of infrastructure sectors such as power, telecom, oil & gas, roads, seaports, airports, shipping and logistics. Shyam started his career at ICICI Securities. Shyam received a PGDM from Indian Institute of Management, Calcutta, and a BE (Mechanical) from Anna University.
Luis Miranda – Luis Miranda is a Senior Advisor for Morgan Stanley India Infrastructure. Luis joined Morgan Stanley in 2014 and has 34 years of experience. Prior to joining the firm, Luis founded IDFC Private Equity, India’s first infrastructure focused private equity fund. Prior to founding IDFC, Luis was a senior member at ChrysCapital and a member of the founding team at HDFC Bank, India’s leading private sector bank. Luis also worked with HSBC, CitiBank, KPMG and PwC. Luis received an MBA from the University of Chicago Booth School of Business.
Investment philosophy/strategy (for firm)
Morgan Stanley India Infrastructure (MSII) focuses on identifying proprietary situations in businesses with attractive long-term growth prospects. MSII seeks to build well-aligned partnerships with capable sponsors and create value through active asset management with a particular emphasis on ESG matters, whilst focusing on generating multiple options for exit within a reasonable timeframe.
North Haven India Infrastructure Fund
The fund’s investment strategy is to invest in infrastructure platforms and infrastructure services companies with high growth potential that derive their revenues principally from India. The targeted investments cover a number of sectors, including the following examples and related sectors:
- Energy and utilities (e.g. renewable energy, electric transmission and distribution networks, water and wastewater systems, smart cities, etc.).
- Transportation and logistics (e.g. roads, airports, bridges, tunnels, ports, railways, waterways, intermodal systems linking various transport modes, urban transport, logistics and logistics related infrastructure, etc.).
- Other sectors include telecommunications, broadband, urban PPP projects, healthcare and education.
The Fund will seek to invest in portfolio companies that support and benefit from overall growth in India’s infrastructure development and will target a market rate of return reflecting the risks of the investment, principally through long-term capital appreciation. All investments by the Fund will be guided by an assessment of government policies and prospects for private sector infrastructure investment. The fund seeks to identify and partner with capable, trustworthy sponsors and management teams.
The fund achieved final closing with US$ 187.55 million of committed capital on July 6, 2020. China-headquartered Asian Infrastructure Investment Bank’s commitment to the Fund is USD 37.51 million and FMO (Dutch entrepreneurial development bank).
Morgan Stanley India infra fund set to raise capital from Dutch investor,VCCircle, 24 March 2020
An India-focused private equity fund managed by global investment firm Morgan Stanley is set to raise capital from Dutch development bank FMO. North Haven India Infrastructure Fund (NHIIF), which focuses mostly on asset-light infrastructure, will raise 15 million euros ($16.2 million or Rs 124 crore at current exchange rate). North Haven seeks to make significant minority or majority stake acquisitions in companies active in segments such as energy and utilities, mobility and logistics, social infrastructure and healthcare. In a disclosure, FMO said the proposed investment in NHIIF will help the private equity vehicle invest in private companies building physical and societal infrastructure, with a view to providing large groups of India’s population with economic efficiencies, as well as services and social welfare. Existing investors in NHIIF include Beijing-headquartered Asian Infrastructure Investment Bank.
- What are the long term goals of the fund? How much return do you aim to provide investors?
- What is the investment tenure of the fund?
- The fund has invested in only four companies so far, what are the factors that motivated you to choose these companies?
- What are the growth prospects of selected companies in the portfolio and at what point would you make exit from these companies?
- Where do you add value to the investment? What skills and support do you add to the firms ?
- How does the firm manage investment risks?
- What are the new challenges and opportunities you see in the Indian infrastructure sector?
Prepared by – Punit Bansal June 2021