News: JM Financial to launch private equity fund

(RTR 09/08/2006) Mumbai - JM Financial Ltd. said on Wednesday it is launching a private equity fund with an initial corpus of $150 million-$175 million.

JM has formed an alliance with U.S.-based Old Lane Partners LP, which would act as the lead investor and co-sponsor of the fund, the Indian firm said in a statement.

To be called JM Financial India Fund, it has already received commitments of more than $90 million, and the rest of the money would be raised from domestic and overseas investors to be invested in Indian companies, the company said.

"This fund is JM Financial group's first private equity fund and we are pleased to have Old Lane as our lead investor," Chairman Nimesh Kampani said in the statement.

Shares in JM Financial rose more than 5 percent to 728.75 in a firm Mumbai market.