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Private equity (PE) companies, whose investments have been stuck for four-five years due to lack of viable exit routes, are in a rush to sell stakes to peers. High valuations and a tough initial public offer (IPO) market saw 2011 witnessing the largest secondary transactions in the domestic PE space. This year, the space has witnessed two major transactions worth $200 million, when Olympus Capital and General Atlantic bought stakes in Indian firms through the secondary route. Vikram Utamsingh, head […]
Private Equity (PE) firms, whose investments have got stuck for the last 4-5 years due to lack of exit opportunities, are in a rush to sell their stake to peers. Due to the tough initial public offer (IPO) market, 2011 witnessed largest size of secondary transaction in Indian PE space. With the beginning of 2012, the PE industry witnessed two major transactions worth $200 million (about Rs 1,000 crore), where Warburg Pincus and General Atlantic bought stake in Indian firms […]
While the SC verdict on 2G licences was a blow to the telecom industry, companies such as Bharti Airtel and Idea Cellular, backed by private equity (PE) players, have benefited. Bharti and Idea have investments from Temasek Holdings and Providence Equity Partners, respectively. The shares of Idea went up 2.7 per cent to close at Rs 95.85 on the Bombay Stock Exchange. Bharti Airtel went up 6.9 per cent to close at Rs 385.95. In many ways, the PE rush […]
US private equity firms Carlyle Group and Warburg Pincus took advantage of recent market gains to pare stakes in two financial companies in deals worth $440 million, a sign of investor wariness about the sustainability of the rally. Buyout firms that invested billions of dollars during the market’s boom years before the global financial crisis are widely expected to look for opportunities to cash in their holdings, with more stake sales anticipated in coming months. “We will definitely see more […]
Amid waning growth sentiment, limited partners (LPs) or investors in private equity (PE) funds are increasingly selling their Indian portfolios as they exit from funds that have not performed in line with expectations. Such secondary deals typically take place at a discount when LPs, such as pension funds, endowment funds or family offices, sell their stake in PE firms to funds that specialize in such deals. In April 2011, for instance, secondary fund Paul Capital invested in NewQuest Capital Partners, […]
The turmoil in microfinance and concerns about corporate governance inflicted collateral damage on social enterprises last year, making venture capital investors wary of putting their money in businesses aimed at low-income communities. The year 2011 was a generally good year for venture capital investing, but social enterprises were the exception because of their perceived connection to microfinance, an industry whose reputation has suffered severe damage in the past few months. “There is no doubt the microfinance slowdown has had a […]
Defying the gloomy economic scenario, over half a dozen overseas private equity funds are set to pump in R3,500 crore ($700 million) in diverse sectors in India including entertainment and leisure, energy conservation, microfinance, antenna manufacturing and surgical instruments, among others. The deals will materialise within the next fortnight or two, sources in the investment banking sector said. This comes despite the slowdown in PE investments in the last three months of 2011. While Mauritius-based PE fund APF-II is looking […]
Investments by private equity funds in Indian real estate grew 69% in 2011, said research firm Venture Intelligence, which tracks PE and VC investment activity in India. Of the 69 transactions that happened during the year, 53 had an announced value of $2,679 million compared to $1,582 million across 63 investments in 2010. The year 2011 saw increased private equity activity in the sector as real estate developers faced a cash crunch. This was because of a drop in home […]
Kitchens at Indian houses are on way of transformation. Hence, more merger & acquisitions (M&As) are taking place among kitchen appliances majors in order to tap the fast growing market. According to experts, changing lifestyle at Indian houses bring more attention to kitchens causing MNCs eyeing strong foothold through M&As or partnerships. In one of the significant deals, French home appliance maker Groupe SEB had acquired 55 per cent in Maharaja Whiteline, the Delhi-based electrical appliance maker last month. In […]
Sobering days are here for India’s big fat private equity industry. PE funds recouped significantly lesser money with the number of exits declining by half, raising concerns for global risk investors already worried over poor returns from the country.
PE funds exited 55 investments netting $2 billion in 2011. This was significantly lower compared to $3.4 billion recouped in 108 exits during the previous year, said a JM Financial note on private equity sector in India. Limited Partners (LPs)-mostly […]
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