October 2008
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PE firms adopt alternatives for better returns

Private equity firms that are going through troubled times across the world, have resorted to various alternatives including diversification of their portfolio to adjust to the present economic constraints. PE firms are mainly diversifying into infrastructure assets, debt funds and energy technology investments, as institutional investors believe there would be stable cash flows into these sectors. “I think what you are going to see is a natural evolution of firms taking their networks and their brand into other fields where they can get a return,” global PE and investment advisory firm CVC Capital Partners Partner Marc St John said. PricewaterhouseCoopers in its Global Private Equity Report 2008 has said “private equity firms are taking advantage of financial turmoil to diversify either by buying new investment businesses from within troubled banks or by hiring experienced investment banking executives who can spearhead expansion into new asset classes and geographies.” […]

Unitech says close to telecom unit stake sale

Indian real estate developer Unitech Ltd is in talks with foreign operators to sell 26-45 percent stake in its nascent telecoms unit, and expects to make an announcement next week, a top official said on Friday. “We are confident that we will be able to shortly close the transaction,” Managing Director Sanjay Chandra he told reporters on the sidelines of a conference. He declined to identify the likely partner, how much it hoped to raise from the sale or confirm market talk that Norwegian telecom group Telenor was a suitor. […]

PE firms witnessed a significant dip

As the global credit crisis casts its spell on the private equity (PE) firms in India, fund-raising has witnessed a significant dip. India-dedicated firms raised $1.8 billion through five funds in the second quarter of this financial year, down 60% compared to the same period a year ago when 11 funds worth $4.5 billion were raised by PE firms. The total size of the funds raised during 2007 calendar year stood at $8.4 billion, according to a study by Venture Intelligence, a firm that tracks private equity and venture capital in India. […]