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Private equity investors are confident about the long-term growth in India and other emerging markets, but are adopting a cautious attitude towards new investment activity in the short to medium term, says a survey by the global consultancy firm, Deloitte. According to Deloitte's Emerging Markets Comparative Private Equity survey across eight emerging markets globally, the long-term growth confidence remains positive, even as the impact of economic downturn can be seen across all of these. The survey reveals that a general cautious attitude for new investment activity, however, exists across all the emerging markets. […]
ICICI Venture, India’s largest private equity firm, has run into difficulties in securing commitments from some key investors for the $841-million India Advantage Fund Series 2. The investors have said they were not informed about recent changes in the company’s management and have, therefore, triggered a clause in their agreement allowing them to hold back their committed funds. This ‘key man’ clause, which is incorporated in the agreement between a fund manager and investors (also known as limited partners, or LPs), allows the latter to change their investment strategy if key management members or employees leave the fund in which they are investing. ICICI Venture already has a firm commitment for two-thirds of the fund’s financing, while the rest is under dispute. The company has over $2 billion in funds under management. […]
US-based investment management firm T Rowe Price is set to buy a 26% stake in UTI Asset Management Company (UTI AMC) for Rs 650-700 crore, two people familiar with the matter told ET. The deal, if it were to finally go through, would value India’s oldest mutual fund house between Rs 2,500 crore and Rs 2,800 crore, or roughly 4-5% of its assets under management. As on June 30, 2009, UTI MF managed roughly Rs 68,000 crore across its debt and equity schemes, and is the fourth-largest fund house in India in terms of assets under management. Total assets managed by T Rowe Price group of companies world-wide stood at $269 billion as on March 31, 2009. […]
Private equity firms sold their stakes in 21 Indian companies in the first quarter of the current financial year to cash in on the buoyancy in stock markets, even as the number of new PE investments more than halved during the period. PE firms made over $298 million from the 21 exits, compared with $969 from nine investment exits in Q1 last fiscal, according to data compiled by Venture Intelligence, a firm that tracks PE and venture capital developments in India. The amount involved in exits this year is significantly lower than that in the year-ago period. “This is primarily because of the nature of the deals. Last time, firms could cash out through the M&A route, even though the number of deals were smaller,” said Venture Intelligence CEO Arun Natarajan. […]
Nomura Holdings Inc. agreed to buy a 35 percent stake in the asset-management arm of India’s biggest life insurer, to expand sales in Asia’s third-largest economy. “India is one of the fastest growing markets for asset management in Asia and is key to Nomura’s push to be the world- class asset-management firm,” Atsushi Yoshikawa, Nomura Asset Management’s chief executive officer, said in an e-mailed statement from Mumbai yesterday. The statement didn’t give financial details of the deal. Nomura will pay about 6 billion yen ($65 million) for the holding in LIC Mutual Fund Asset Management Co., a unit of Life Insurance Corp. of India, the Nikkei newspaper reported, without saying where it obtained the information. […]
An investment arm of C Sivasankaran, the non-resident Indian businessman better known as Siva in Corporate India, has emerged as a significant shareholder in Aamby Valley — the company floated by the Sahara Group to develop Aamby Valley City — a famous upmarket township project in Maharashtra. According to documents available with ET, Siva Ventures (SVL) owns a 49% equity stake in Aamby Valley. SVL is a wholly-owned subsidiary and the principal investment arm of the Sterling Infotech Group promoted by Mr Sivasankaran. In a recently-prepared information memorandum, Siva Ventures said it “has a significant presence in infrastructure and township building business by way of 49% ownership in the equity share capital of Aamby Valley, owners of Aamby Valley City”. The information memorandum was prepared last month when Siva Ventures raised Rs 435 crore through private placement of non-convertible debentures. ET has a copy of the memorandum. […]
Aegis, the business process outsourcing arm of the diversified Essar Group, has bought South Africa's CCN Group – paving the way for 5000 jobs to be created. Aparup Sengupta, Global CEO and Managing Director of Aegis said in a statement on Thursday that CCN was a strategic fit for Aegis. “This combined entity will offer CCN's clients and prospects an expanded set of solutions and services from a broader geographic delivery platform,” he said. “South Africa becomes an integral part of our growth strategy and offers an opportunity for Aegis to develop skills, create employment and bring in international experience to South Africa.” […]
Improving market sentiments post parliamentary elections seem to have begun showing in the private equity investment space. Private equity investments in June 2009 increased 74% in value terms and 20% in number of deals as compared with May 2009 figures, according to monthly private equity update by Anand Rathi Investment Banking Research (ARIBR). According to data compiled by ARIBR analysts Arnab Banerjee and Sachin Mehta, overall, investments worth $662.7 million were made across 24 deals – as against $332.7 million and 20 deals in May 2009. […]
UTI Ventures, the venture capital (VC) arm of UTI Asset Management Company (AMC), is raising Rs 15 to Rs 20 billion fund and hopes to complete the process by December, reports Business Standard. This fund would focus on deals in the range of Rs 500-750 million in areas such as infrastructure services, domestic consumption and outsourcing. UTI Ventures is looking at domestic institutional investors (DIIs) — including insurance companies, mainly Life Insurance Corporation of India (LIC), and banks — and foreign investors such as sovereign wealth funds, endowment funds and private pension funds. […]
At a time when raising funds is a concern for private equity (PE) players globally, sponsor commitments are increasingly gaining relevance among funds as a committed source of capital. Experts said that in many cases, it has rescued the funds which were unable to achieve closures due to inadequate commitments. The trend has become especially prominent in the last few months when limited partners (LPs) tightened the flow of capital to private equity funds. Sponsor commitment or anchor investment is the amount of capital committed by the sponsors of a fund. The anchor investment is made at the initial stage of fund-raising to start the process and provide a sense of confidence to LPs. […]
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