Development Finance Institutions: IDFC Private Equity Case Study

The India Development Finance Committee was started in 1997. At the time, it was an uphill battle. DFIs in India lacked the institutional support for sustainability and risk aversion due to an unsupportive public infrastructure. Following the Finance Minister’s announcement in 2002 that a Rs. 1000 Cr equity fund would be set up and managed by IDFC Private Equity, the institution found itself in a tough position.

Mr. Luis Miranda was brought on board to tackle regulatory roadblocks, stakeholder management and setting up India’s largest fund. Every decision was crucial. Any misstep could end IDFCPE before it properly began. Given the stakes, this case follows the problems and decision dilemmas faced by Mr. Miranda through his journey of setting up IDFCPE.