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PE industry’s latest challenge: zombie funds

After grappling with less-than-expected returns and an absence of opportunities to exit, the private equity (PE) industry in India is facing yet another challenge—a growing number of funds that are turning inactive, or zombie. Almost one-fifth of funds that were investing in India till 2009 have gone cold and stopped investing. There are only 219 active funds in the country and 41 funds have become zombie, according to VCCEdge, which tracks investment activity in the country. Roughly, for every five […]

Health care to attract more PE investment: Experts

Private equity (PE) investors are bullish on the largely under-penetrated health care industry, which offers high growth opportunities for companies as well as investors.

PE and venture capital firms are largely looking at opportunities in start-ups and smaller, niche companies. For instance, India is known as the diabetes capital and the prevalence of cancer is rapidly on the rise. PE investors have already invested in companies which are into eyecare, diabetes, diagnostics and oncology.

“In the last two years, healthcare […]

PE investments in 630 companies waiting in exit queue, but bleak economy and muted stock markets spoil plans

Atul Nishar, founder of Hexaware Technologies, has been planning an exit for private equity investor General Atlantic for at least 12 months now. The PE fund’s Rs 300-crore investment made at Rs 142 a share seven years ago is now trading at Rs 118 a share. “Whenever GA wants to sell its stake, we will help find a suitable PE fund to buy it,” says Nishar. Bankers were appointed a while ago to squeeze out an exit. A secondary offer […]

Private Equity exits up 38% in April-June 2013: Venture Intelligence

The exit of private equity (PE) firms from their investee companies has shown an upward trend in the quarter ended June 2013, with exits were reported from 29 Indian companies as against 21 exits during the same quarter of last year marking an increase of 38%, says research service firm Venture Intelligence.

The Initial Public Offering (IPO) of internet-based search firm JustDial has fetched over 10x return for one of its PE investor SAIF, while exit of PE investor TPG […]

PE deals’ valuation surged to $1.8 bn in May: Grant Thornton

The valuation of private equity deals surged significantly in May to USD 1,851 million driven by Qatar Foundation Endowment’s USD 1.26 billion investment in Bharti Airtel.

According to audit and advisory firm Grant Thornton, the total PE deals during May were valued at USD 1,851 million through 31 transactions, as against USD 344 million from 26 deals in May 2012, taking the deal tally during the first five months of the current year to USD 4,395 million.

“Private equity deal […]

Investors no longer keen on buyout funds

Large buyout funds may have problems raising investments, with limited partners, or the individuals and entities that put money into private equity and venture capital funds not keen to invest in those that are involved in transactions worth $1 billion (around Rs.5,500 crore) or more, a study shows. And India, besides China, isn’t as popular as it once was because of the indifferent performance of fund managers here, the study also found. According to Coller Capital’s Global Private Equity Barometer, […]

PE deals remain hot in Indian kitchens

Private equity (PE) investors who want a major pie of the Indian consumption story have found a new investment opportunity–kitchen appliances. The urbanisation of Indian kitchens as a result of the mounting number of nuclear families, as well as multinationals’ entry into the segment, has made the sector a sought-after one for PE funds.

During a week’s span, TTK Prestige, the leading pressure cooker maker in India, has received investments worth $40 million (Rs 300 crore) from global PE investor […]

PE investments witness dip during Jan-March

After witnessing a tough 2012, the private equity industry, ended the first three months on 2013 with a thud. Total investments made were worth Rs. 5,228 crore across 66 deals, fall of 56% in value terms compared to the same period last year. When compared to the last three months 2012, the dip was 18% in value terms, says the latest PwC’s MoneyTree India Report with data provided by Venture Intelligence. “This quarter the trend has changed from deal making […]

PE deals to see moderate rise: Survey

Private equity players expect a moderate increase in deal activity in India during 2013 with healthcare emerging as the top pick for these investors, a survey said. “Expectations about deal activity in 2013 remain cautious but still positive on the whole. Our interviews suggest that deal activity will see moderate growth in 2013 throughout the industry. The steps taken towards improving India’s legislative framework have made investors a bit more upbeat , and general partners suggest that more deals will […]

Private equities may tap M&As to exit in 2013 as IPOs dry up

Private equity and venture capital environment is likely to remain muted till 2014 with most PE players looking at exiting their investments and getting into a consolidation phase. However, owing to a relatively dry IPO pipeline, the standard exit route for PEs is no longer valid, said tax and advisory firm Grant Thornton in a joint report with Indian Private Equity and Venture Capital Association (IVCA). “PE’s are looking at other mechanisms of exits such as mergers and acquisitions and […]