|
Private-equity funds’ investments in stock broking firms in India are turning out to be a bitter experience. 2011 has been another year of pain and no gain for the PEs in stockbroking firms as as Indian markets ended with 25 per cent losses. “It has not been a happy experience,” admits Munish Dayal, partner, Baring Private Equity Partners, which invested about $35million in mid-2007 in Kochi-based JRG Securities at Rs 49/share. At present, the stock is quoting just above Rs […] Calendar 2011 has been marked by a high number of investments and low volumes of exits for the private equity industry as compared with last year. Although the year saw good valuations on offer for private equity investors, it was difficult to exit from existing investments, say analysts’ reports. Private equity deals adding up to nearly $8.6 billion were seen in 2011 as compared with the $8.2 billion worth of deals last year, said the KPMG India report on Private […] Private equity players and venture capitalists are cautiously optimistic about the prospects of their businesses, yet are hopeful of clinching more deals in the new year, say industry experts. “We are cautiously optimistic about 2012 as global uncertainty still looms large. However, the number of deals is likely to be higher as valuation look attractive,” IDG Ventures vice-president Ranjith Menon said. He also said global PE players may invest less in 2012 due to the risk aversion of foreign investors […] After foreign institutional investors turned net sellers in the Indian stock markets in 2011, the finance ministry came out with a mechanism to arrest market volatility in the new year. The ministry on Sunday decided to allow foreign individuals and pension funds, as well as other entities, to invest directly in equity markets. The individual and aggregate investment limit for these investors would be capped at five per cent and 10 per cent, respectively, of the Indian company’s paid-up […] Private equity deals witnessed a 24% surge in value and volume terms this year, with 347 transactions valued at $7.7 billion announced during the period, a 24% jump vis-a-vis the corresponding period last year. According to consultancy firm Grant Thornton, PE deals worth $7.7 billion were announced this year through 347 transactions compared to $6.2 billion by way of 253 deals in 2010. The Grant Thornton’s Dealtracker report has taken into consideration deals up to December 9, 2011. The deal […] Apart from raising PE funds, these firms are now raising mezzanine funds, private investment in public enterprises (PIPE) funds, real estate and infrastructure funds Private equity (PE) firms in India are offering multiple investment options across asset classes to their investors, known as limited partners (LPs), who are backing fewer fund managers to fetch better returns. Apart from raising PE funds, these firms are now raising mezzanine funds, private investment in public enterprises (PIPE) funds, real estate and infrastructure funds. […] Real estate-focused private equity (PE) funds, which have seen falling returns in last three years, are now finding it hard to raise liquidity for the new funds in the sector. So you have a $500-million infrastructure and realty-focused fund from a well-known private bank that is unable to raise the amount for more than eight months. “Investors have got cautious,” a former head of the fund told HT. “Earlier, PE players would go to investors and pitch the India growth […] Last month Ivanhoe Cambridge, one of the world’s ten largest real estate companies, decided to call it a day in India. The Canada- headquartered firm had spent almost three years in India looking for appropriate investments in retail real estate either on its own or with partners who could meet its risk return criteria. The end result, not a single deal. There have been other exits also, among them RREEF, a real estate PE fund promoted by the Deutsche Bank […] Real Estate emerged as the popular parking place for private equity funds who invested $1,700 million in the sector during 2011. Power sector that topped the PE charts during the first six months of the year finished third with $892-million investments behind automotive sector that could attract $1006 million private equity funding. Overall PE investments during the year rose to $7.7 billion through 347 deals, up from $6.2 billion and 253 deals in 2010. However, the country’s total investment in […] The Indian real estate sector has grown rapidly over the last few years, with its stakeholder profile evolving from locally-focused, privately-owned enterprises to increasingly corporatised, professional organisations funded with public capital and having multiple market and product strategies. As a result, Indian real estate has seen a considerable flow of capital in recent years, both from foreign as well as domestic sources. The developer community is adapting to the requirements of joint venture arrangements with institutional capital sources by providing […] |