SOURCE: Darby Overseas

Darby Overseas

January 19, 2010 15:46 ET

Darby Advised Private Equity Portfolio Makes Investment in Hyderabad Based Infrastructure Construction Company

Second Investment by Franklin Templeton Private Equity Strategy

MUMBAI, INDIA--(Marketwire - January 19, 2010) - Franklin Templeton Private Equity Strategy ("FTPES"), a private equity portfolio managed by Franklin Templeton Asset Management (India) Private Limited, ("FT India") and advised by Darby Asia Investors (India) Limited ("Darby India"), the private equity affiliate of Franklin Templeton, has invested up to Rs 600 million in Hyderabad based GKC Projects Limited ("GKC"). Transaction details were not disclosed.

GKC provides construction services in key infrastructure areas such as roads, irrigation, power (civil portion) and pipelines, and has operations diversified across various regions in India. The company now plans to leverage on its expertise in the infrastructure space executing projects of larger size and complexity in the existing segments and venture into new areas such as railways and mining. The funds will be used to execute pipeline projects and enable acquisition of larger projects.

Deepa Sankaran, managing director, Darby India, commented, "We are pleased to advise the GKC Projects investment is being added to the FTPES portfolio. The company fits perfectly with FTPES's strategy of investing in medium-sized companies with strong growth prospects, high caliber management and excellent product quality."

About Franklin Templeton Private Equity Strategy

FTPES is a private equity investment product offered to high net worth individuals in India and closed in 2008 with a total capital commitment of Rs 6300 million. The objective of FTPES is to make selective investments in high growth, mid-sized unlisted companies in India -- in areas such as infrastructure, manufacturing, and consumer goods, and in related sectors.

Darby Overseas Investments Limited ("Darby") is the private equity arm of Franklin Templeton Investments, and is a premier investment manager in emerging markets private equity and infrastructure investments with over $2.6 billion assets under management. Darby India is an affiliate of Darby. For more information, visit darbyoverseas.com.

Darby is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over $553 billion in assets under management as of 31 December 2009. For more information, please visit franklintempleton.com.

Risk Factors: An investment in the Portfolio involves a significant degree or risk and is suitable only for investors who fully understand and are capable of bearing the risks of an investment in the Portfolio. Investors should carefully consider the investment objectives and the investment restrictions of the Portfolio as described in the Disclosure Document and the Agreement. There can be no assurance that any of the Portfolio's objectives, including its target rate of return, will be achieved, or that there will be any return of capital. In addition, there will be occasions when the Portfolio Manager or its affiliates may encounter potential conflicts of interest in connection with the activities of the Portfolio. Investors are requested to read the Disclosure Document and the Agreement carefully for the details of risk factors and conflict of interest.

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