Singapore: Warburg Pincus, the world's second-biggest private equity firm, plans to invest $ 500 million in India in coming years and is moving its Singapore team to Mumbai to help manage the holdings in Asia's third-largest economy.

The New York-based company may plough $ 100 million into the country this year, Dalip Pathak, the partner in-charge of India, said in an interview. The firm to date has invested $ 900 million in Indian companies.

The move takes Warburg Pincus executives including Pulak Prasad and Rajesh Khanna to seek investments in an economy that probably grew 8.1 per cent in the year ended March 31.

Prasad and Khanna are part of a seven-member team based in Singapore at the moment.

"Warburg Pincus has done well in India so this is a logical progression," said Prasenjit Basu, managing director of Robust Economic Analysis in Singapore. "Singapore was a good launching pad when things were more uncertain."

Past investments include a $ 292 million stake in mobile phone operator Bharti Tele-Ventures Ltd. Pathak and Prasad are directors of Bharti.

The Company is second to Kohlberg Kravis Roberts and Co in the private equity industry, with $ 19 billion of funds. The companies aim to make venture capital investments in start-up businesses and leveraged buyouts of out-of-favour companies before selling the assets for a profit.

Warburg Pincus can use a $ 5.3 billion fund raised in 2002 and a $ 2.5 billion pool from 2000 to buy stakes in closely held Indian companies as well as some publicly traded businesses.

Founded in 1966 by German-born banker Eric Warburg and US venture capitalist Lionel Pincus, the firm will target companies involved in most industries, including infrastructure, financial services and information technology, said Pathak.

"We had a minimal presence and now we have a large exposure," said Pathak, 53, who is also head of Warburg Pincus's London office. "We need more resources on the ground."