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PE confident on long term growth in India, emerging markets

Private equity investors are confident about the long-term growth in India and other emerging markets, but are adopting a cautious attitude towards new investment activity in the short to medium term, says a survey by the global consultancy firm, Deloitte. According to Deloitte's Emerging Markets Comparative Private Equity survey across eight emerging markets globally, the long-term growth confidence remains positive, even as the impact of economic downturn can be seen across all of these. The survey reveals that a general cautious attitude for new investment activity, however, exists across all the emerging markets. [...]

ICICI Venture fund raising hits roadblock

ICICI Venture, India’s largest private equity firm, has run into difficulties in securing commitments from some key investors for the $841-million India Advantage Fund Series 2. The investors have said they were not informed about recent changes in the company’s management and have, therefore, triggered a clause in their agreement allowing them to hold back their committed funds. This ‘key man’ clause, which is incorporated in the agreement between a fund manager and investors (also known as limited partners, or LPs), allows the latter to change their investment strategy if key management members or employees leave the fund in which they are investing. ICICI Venture already has a firm commitment for two-thirds of the fund’s financing, while the rest is under dispute. The company has over $2 billion in funds under management. [...]

T Rowe Price set to buy 26% in UTI AMC

US-based investment management firm T Rowe Price is set to buy a 26% stake in UTI Asset Management Company (UTI AMC) for Rs 650-700 crore, two people familiar with the matter told ET. The deal, if it were to finally go through, would value India’s oldest mutual fund house between Rs 2,500 crore and Rs 2,800 crore, or roughly 4-5% of its assets under management. As on June 30, 2009, UTI MF managed roughly Rs 68,000 crore across its debt and equity schemes, and is the fourth-largest fund house in India in terms of assets under management. Total assets managed by T Rowe Price group of companies world-wide stood at $269 billion as on March 31, 2009. [...]

PEs exit 21 cos in Q1, earn $298 mn

Private equity firms sold their stakes in 21 Indian companies in the first quarter of the current financial year to cash in on the buoyancy in stock markets, even as the number of new PE investments more than halved during the period. PE firms made over $298 million from the 21 exits, compared with $969 from nine investment exits in Q1 last fiscal, according to data compiled by Venture Intelligence, a firm that tracks PE and venture capital developments in India. The amount involved in exits this year is significantly lower than that in the year-ago period. “This is primarily because of the nature of the deals. Last time, firms could cash out through the M&A route, even though the number of deals were smaller,” said Venture Intelligence CEO Arun Natarajan. [...]

Nomura to Buy Stake in Life India Asset Manager to Expand Sales

Nomura Holdings Inc. agreed to buy a 35 percent stake in the asset-management arm of India’s biggest life insurer, to expand sales in Asia’s third-largest economy. “India is one of the fastest growing markets for asset management in Asia and is key to Nomura’s push to be the world- class asset-management firm,” Atsushi Yoshikawa, Nomura Asset Management’s chief executive officer, said in an e-mailed statement from Mumbai yesterday. The statement didn’t give financial details of the deal. Nomura will pay about 6 billion yen ($65 million) for the holding in LIC Mutual Fund Asset Management Co., a unit of Life Insurance Corp. of India, the Nikkei newspaper reported, without saying where it obtained the information. [...]