October 2010
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Bajaj Holdings picks up 12.82% stake in NMCE

The National Multi Commodity Exchange of India (NMCE) on Wednesday said it will raise Rs 25 crore via selling its 12.82 per cent stake to Bajaj Group arm —Bajaj Holdings and Investment Ltd. “This investment will help NMCE to meet its regulatory capital requirement and strengthen its balance sheet for investment in exchange infrastructure,” NMCE said in a statement. Both companies on Wednesday jointly announced that they have signed a definitive agreement under which Bajaj Holdings has agreed to invest Rs 25 crore in the commodity exchange, the statement added. Equirus Capital acted as the exclusive financial advisor to NMCE for the transaction. NMCE would also utilise the raised capital for strengthening of the exchange IT infrastructure, business development and human resources, the exchange said. […]

PE companies find it difficult to raise funds

Private equity (PE) firms are finding it difficult to raise money as their limited partners (LPs), such as endowment funds, pension funds and development finance institutions, lay down tougher terms for investment. Fund managers, also called general partners, or GPs, say the LPs are demanding a greater share of profits and a seat on the investment committee. To assess the profitability of their investments, LPs are also looking into areas such as the team composition of PE firms. The change has been driven by a proliferation of PE firms that have little to differentiate them, and a growing perception among LPs that the market is overvalued. “The burden of proof is on GPs to explain to investors how their PE fund will be different from others,” said Harsha Raghavan, who founded Steer Capital Advisors Llp with Neeraj Bhargava and is raising funds. “Notwithstanding the growth, GPs need to segment the market and consequently help LPs identify the current set of market opportunities.” India-focused PE funds raised $1.3 billion ('5,811 crore) in the first half of 2010, or less than half the $2.7 billion raised in the first half of 2009, according to an August report by Emerging Market Private Equity Association, a non-profit independent global organization. […]