Citi Vencap’s Srinivasan to unveil own $400 m fund

The trend of exits by hi-profile honchos in the Indian private equity (PE) space to start their own businesses continues.

PR Srinivasan, the managing director of Citigroup Venture Capital International’s (CVCI) India operations, is the latest to join the bandwagon.

Industry sources told DNA Money that P R Srinivasan (popularly known as PRS in the PE fraternity) has quit CVCI. Currently on gardening leave (on the rolls but not attending office), PRS is likely to launch own private equity fund by the year end.

“PRS will be leaving CVCI early August this year. He is planning to re-enter the private investment business with his own fund,” said the source.

Srinivasan is planning to raise between $350 million and $400 million fund, which will focus on the domestic market.

The fund, which would be sector-agnostic with an investment sweet-spot of $30-35 million, would be launched towards end of 2010. “There is a short-term non-compete agreement, post his exit from CVCI which expires by October-November this year. The new fund plans should get announced any time thereafter. The first close of $150-200 million can be expected by mid-2011,” said the source.

PRS joined the investment firm in 2002 and was at the helm since Ajay Relan quit in mid 2008.

“The corpus will largely be raised from overseas limited partners such as pension funds, fund of funds, universities and endowments. The domestic component will be around $100 million and will be primarily raised from institutions and banks,” the source said.

While a firm has already being engaged to advise on the branding of the new PE company, PRS is understood to have kick-started the process of identifying office space in Mumbai and team members. In the initial stage, the team will comprise four, including two partners and a chief financial officer.

In April this year, N Subbu Subramaniam of Baring Private Equity Partners launched his own business under the banner of M Cap Fund Advisors. Earlier in March, Rajesh Khanna, the India head for private equity major Warburg Pincus, quit to set up his own investment business.