Soros buys into Biyani's Future Capital

Date: Friday, November 23, 2007
Author: Kala Vijayraghavan, TNN

MUMBAI: George Soros’ Quantum Fund has picked up an undisclosed stake in Future Capital Holdings (FCH), the financial services arm of Kishore Biyani’s Future Group, it is reliably learnt. Och Ziff Capital, one of the world’s largest hedge funds, has sold a part of its 10% stake in FCH to Quantum, a person in the know told ET.

The fund is believed to have valued FCH at $1 billion. FCH CEO and managing director Sameer Sain declined to comment. Mr Sain, a former Goldman Sachs managing director, is a co-promoter of FCH. Future Group’s Pantaloon Retail has a 61% stake in FCH.

The move is part of the investment strategy of Soros to pick up stakes in the booming Indian real estate, retail and financial services sectors. Quantum Investment Fund currently has a stake in Reliance Capital.

Meanwhile, FCH has received the RBI clearance to launch its credit card in partnership with ICICI. The card combines credit and loyalty programmes of all Future Group formats, sources said.

FCH has filed a draft red herring prospectus (DRHP) with market regulator Sebi for its IPO that is expected to be launched in the next few weeks. The move is a bid by Future Capital to raise money for expanding its chain of consumer finance outlets, unlock shareholder value and incentivise its talent through stock options.

FCH has a private equity fund, Indivision, and real estate funds Kshitij and Horizon that develop retail-led real estate around the country. It also has a hotels and a logistics division.

FCH has also launched a financial supermarket concept called Future Money and has already opened 80 outlets within the last four months. It is also considering plans to set up an investment company on the lines of Warren Buffet’s Berkshire Hathaway.