September 2009
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Axis PE to launch second fund soon

Axis Private Equity (PE), a fund sponsored by the third largest private sector lender Axis Bank, plans to invest Rs 200 crore in two more companies, while it lines up its second fund. The second fund will hit the market later this year. While its first fund with a corpus of Rs 600 crore was primarily raised from the domestic market, especially from some large banks and companies, it aims to raise the second fund from abroad. The company, however, declined to disclose the details of the forthcoming fund. Raising fund internationally is difficult at the moment as limited partners (LPs) are closely evaluating the performance of PE players. Of late, LPs have started buying interests of other LPs at a discount. [...]

Advent expands India operations

Advent International Corp., a Boston-based private equity firm, hired Shweta Jalan to expand its private equity business in India. The U.S. firm began investing in Asia’s third-largest economy two years ago when it acquired a stake in Computer Age Management Services Ltd., a transaction processing company. Advent appointed P.J. Nayak, former chairman of Axis Bank Ltd., as a partner in July to advise on Indian investments. Advent International has raised $24 billion in private equity capital and has completed over 250 transactions valued at about $45 billion in 35 countries, the release said. [...]

Realty firms eye at PE bailout for hotel projects

According to a report by Sobia Khan & Pranav Nambiar of DNA, realty majors, left with few avenues to fund their ambitious hotel projects, are now hoping for a private equity (PE) bailout. Developers like Parsvnath, Nitesh Estate and Brigade Group have kicked off negotiations with PE players to bail them out. For instance, New Delhi-based Parsvnath Developers recently prepared an information memorandum for the purpose. “We plan to raise money for hospitality projects but currently it is in an early stage of discussion,” said an official on condition of anonymity. The company has expressed its intention to focus on six projects in Hyderabad, Ahmedabad, Lucknow, Goa, Mohali and Shirdi. [...]

Capital International PE sold mindtree shares

The Capital International Global Emerging Markets Private Equity Fund has sold a 3.9 per cent stake in Indian computer services provider MindTree. The fund sold 1.52 million shares at INR540.02 ($11.13) each. According to Bloomberg, 1.03 million of the shares were bought by the Franklin India High Growth Companies Fund, the Franklin India Taxshield Fund and the Franklin India Flexi Cap Fund. [...]

Oman sovereign fund to invest $125m in Mohtisham township

A sovereign fund of the Sultanate of Oman is investing roughly $125m, in Mangalore-based realty developer Mohtisham’s 300-acre integrated township, sources privy to the development said. The deal is probably the largest fund action in Indian tier-II real estate. Oman Investment Fund, through a Cypress-incorporated entity, is picking up 50% stake in Mohtisham Estates [...]

Zain Shareholders Selling 46% Stake to India-Malaysian Consortium

­Zain shareholders have agreed to sell a 46% stake in the company to various other investors, although very few details have been confirmed at this time. In a statement to the Kuwait Stock Exchange, National Investments said that it would sell its 10.86 percent stake in Zain for a price of 2 dinars ($6.97) a share, and will lead a group of other shareholders in selling their stakes. It has been reported that a group led by the little known, privately held Vavasi Group and Malaysian billionaire Syed Mokhtar Al-Bukhary may buy the take, valued at US$13.7 billion. The Indian-Malaysian group signed a “transaction agreement” yesterday – and it is reported that India's state controlled BSNL and MTNL will also join the consortium, although that has not been confirmed yet. [...]

Secondaries set to take off, according to survey

Whilst it appears that the market downturn has caused Institutional Investors (Limited Partners) to abandon investing in new private equity funds, many investors have eagerly flocked to the secondary private equity market with the intention of purchasing secondary interests at substantial discounts from the expected flood of distressed investors. This strategy has seen little success to date as the bid-to-offer spread has been too wide for many secondary transactions to complete, with the anticipated deluge of distressed sellers looking to sell interests at any price not quite materialising. [...]