Former ICICI Venture investment director Aluri Srinivasa Rao will head the soon-to-be set-up private equity arm of Morgan Stanley in India. Morgan Stanely already has an investment bank and an asset management arm in the country. It had parted ways with JM Financial last year to go solo in India. The new private equity arm is to be launched on May 1. Rao had quit ICICI Venture early this month. He was an investment director there mainly doing deals in healthcare and life sciences space.
Morgan Stanley has been investing in India through its Asia-dedicated private equity fund. It had closed a $1.5 billion fund in the third quarter of 2007.The other global investment banks such as Merrill Lynch and Goldman Sachs already have very active proprietary private equity arms in India.