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The Carlyle Group spent half of its invested capital last year on “corporate and real estate transactions”, as the private equity giant concentrated on fundraising during a difficult time for dealmaking and exits in the buyout industry. According to its annual report, released yesterday, Carlyle invested and committed $5.2bn (€4.1bn) last year. Of that amount, $2.7bn was spent on 47 “new corporate and real estate transactions with a cumulative enterprise value of more than $4.4bn”. These transactions included 23 in new real estate deals worth $524m and an additional $501m in residential mortgage-backed securities. Like other private equity firms, Carlyle generated few exits from its investments last year. Four of its Chinese portfolio companies went public, raising $3.8bn, and US-based SS&C Technologies Holdings raised $160.5m through its listing on the Nasdaq stock exchange. […]
Private sector Bank of Rajasthan (BoR) Tuesday said its board has approved merger with India’s largest private sector lender, ICICI Bank, through a share swap. BoR’s managing director and chief executive G. Padmanabhan said the board has given its in-principle approval for the merger. The share-swap ratio is likely to be decided by May 23. In a regulatory statement, BoR said: “The dominant shareholders of the Bank of Rajasthan (transferor bank) have entered into an agreement on May 18 with the ICICI Bank (transferee bank) for proposing an amalgamation of both the transferor bank and transferee bank.” […]
Emerging markets fund firm Ashmore said on Thursday it has launched a fund jointly with power trading firm PTC India that aims to raise $750 million to finance power projects across all energy-related sectors in India. India's power sector, beset by a peak power deficit of 12 percent, has struggled to attract foreign investment in recent years, but the tide seems to be changing. In March, a group of investors including Morgan Stanley's infrastructure arm, Goldman Sachs, and General Atlantic said it invested $425 million in Asian Genco Pte Ltd, which has stakes in power generation assets in India. […]
About 77% of private equity players in the country expect an increase in investment momentum in the coming 12 months, according to a survey by Deloitte Touche Tohmatsu India. And the deals will be simpler. The report said 87% of respondents rated 'structured development capital' (in essence, a return to the traditional way of structuring development capital deals, using less leverage and a simplification of the structure) to be the key focus area for investment this fiscal. Following this are transactions in the venture capital, pre-IPO and buyout space, in that order of priority. “Some funds have committed a lot of private investments in public enterprise (PIPE) deals since 2007 and have suffered mark-to-market losses. We'll increasingly see a return to basics — back to structured development capital deals. However, PIPEs will continue to see activity given the lack of sizable development capital deals,” Avinash Gupta, head-financial advisory services for Deloitte Touche Tohmatsu India, said in the report. […]
Fortis Healthcare, Asia’s biggest hospital chain, raised Rs 380 crore by selling shares to Singapore state-run investment company GIC Special Investments as part of its plans to raise Rs 3,000 crore for expansion. The company has agreed to sell 6.58% of the company, or 22.35 million equity shares, at Rs 170 apiece, 1.5% higher than its closing price on Monday. Its shares rose 1.27% to Rs 167.25. The funds will be used to part finance recent acquisitions like the purchase of TPG Capital’s 25% stake in Singapore’s Parkway Holdings for around $715 million and also for more in the future, said a statement. The deal may close by June. The New Delhi-based Fortis plans to sell foreign currency convertible bonds (FCCBs) and other securities in the months ahead as it funds the Singapore acquisition and last year’s purchase of 10 hospitals from Wockhardt. The company has been growing its revenues through acquisitions, but the profits are yet to come by. […]
Council of Scientific and Industrial Research (CSIR), the industrial research and development organisation under the central government, plans to take equity stakes in some companies to whom it is lending technological innovations. Samir K Brahmachari, director general, CSIR and secretary, department of scientific and industrial research, Government of India, told DNA, “We will take stakes in smaller companies. We have received the government’s approval for it and are already negotiating with the companies. Many are in the pipeline in the life sciences and energy sectors, which have great potential.” CSIR has been charging fees and royalties for its technology transfers for commercial use to private companies but hasn’t taken stake in any company. […]
ICICI Venture, the private equity arm of lender ICICI Bank , plans to launch a $500 million fund by July to invest in infrastructure projects, its chief executive said. “In the private equity context I would put education (and) hospital as part of infrastructure, but there is also a big opportunity on serious infrastructure like roads, ports, power,” Vishakha Mulye told Reuters in an interview. India has made building of roads, bridges, airports and power plants a priority and expects private firms to fund half of a projected $1 trillion in infrastructure between 2012 and 2017. India's diversified conglomerate Tata Group and private equity firm Actis aim to bid for $2 billion of road projects in India over the next five years as the country makes a major push to build highways. […]
Godrej Consumer Products is in talks with a clutch of private equity investors to raise USD 125 million, two sources with direct knowledge of the matter said on Tuesday. The company is in talks with US giants Carlyle Group and Blackstone, as well as India's ChrysCapital and Standard Chartered Private Equity, the sources said. Godrej has hired JM Financial Ltd to arrange the deal, sources said. […]
Private equity (PE) funds will remain a preferred choice for capital growth and Indian industries will receive about $ 10 billion investments from the PE deals by the end of this year, says a latest report jointly released by global auditing firm KPMG and the Confederation of India Industries (CII). “India has a very vibrant private equity industry with over $ 32.5 billion invested across more than 1,500 PE deals from January, 2006, till date. As per the industry estimates, PE investments would be in the range of $ 9-10 billion in the year ending December 31, 2010,” says the report. It adds PE funding is expected to provide capital to fund much-needed infrastructure projects to support gross domestic product (GDP) growth of seven to eight per cent in India. According to the report, the country needs about $ 1.3 trillion investment over the next three years to sustain a GDP growth of seven to nine per cent out of which $ 60-100 billion will be PE investments. […]
Crisis-ridden private-sector lender Bank of Rajasthan's promoter P K Tayal today ruled out any possibility of selling his stake in the bank amidst speculations that ICICI Bank and Axis Bank have evinced interest for a buy out. “There are people who are coming (to buy the stake). They are not welcome … the answer is no,” Tayal told PTI when asked if he was open to sell his shareholding in the bank. At present, Tayals have a stated holding of around 28 per cent in Bank of Rajasthan while according to market regulator Securities and Exchange Board of India, promoters' actual holding in the entity is around 55 per cent. […]
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