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Carlyle Group, the Washington-based private equity firm yesterday invested Rs112 crore ($25 million) in India's Visen Industries Ltd, a manufacturer of water-based polymer emulsions. Carlyle has invested the money from its $1.04 billion fund, FCV III, a part of its Asia Growth Partners IV (CAGP IV), which invests in invests in in key Asian markets such as India, Korea and China. “Visen's business is a play on the strong consumption led demand growth across paints, textiles, adhesives and construction in India and other emerging markets. Visen has a clear track record of growth and a well defined strategic roadmap for future expansion,” said Carlyle Asia Growth Capital head and managing director, Wayne Tsou in a statement. […]
In what could be a revival of investor interest in firms offering credit to the poor, microlender Janalakshmi Financial Services Pvt. Ltd (JFS) has raised '65 crore in its third round of funding from private equity (PE) firms. “Coming after a major crisis in the sector, this is a major transaction and is a clear sign that the tide is turning for microfinance,” said Ramesh Ramanathan, chairman of JFS, which focuses on lending to the urban poor. The number of deals involving investments in microfinance companies has fallen this year although the quantum has remained almost the same. In the first six months of 2010, seven investments worth $75 million ('336 crore today) were made in microfinance companies; between January and June, only four investments (including the one in JFS) worth $69 million have been made, according to Venture Intelligence, which tracks deals involving venture capital and PE firms. […]
In one of the larger deals in the legal outsourcing industry, three venture capital firms have picked up the entire stakeholding of co-founder Ajay Agrawal in UnitedLex Corporation , a legal process outsourcing firm. Existing investors, Helion Venture Partners and Canaan Partners, along with private equity major Sequoia Capital have together invested 75.3 crore (about $17 million) to pick up Agrawal's holding in UnitedLex, according to a person with direct knowledge of the transaction. The deal which closed on Thursday, gives the three PE firms an 18.1 % stake in the company that has been valued at 400 crore (approximately $92.5 million). “The deal has been completed and I have received the money in my bank,” said Ajay Agrawal who will now exit the firm that he co-founded in late 2006. Executives at Sequoia Capital and Helion Venture did not respond to email questions sent by ET. […]
Private equity firm Fidelity Growth Partners India has invested about $15 million (Rs 67 crore) to acquire an undisclosed minority stake in Delhi-based Mind Shaper Technologies. Mind Shaper, which operates under the Classteacher Learning Systems brand, is into K-12 educational content in the country. “Fidelity Growth Partners India (FGPI) invests up to $15 million to acquire a significant minority stake in Mind Shaper Technologies,” the Delhi-based firm said in a statement. The investment would be used to expand the company's product portfolio. […]
Village Laundry Service, a portfolio company of Innosight Ventures, has received a fresh round of funding from Canadian private equity investor Kensington Capital Partners and Mumbai-based Index Advisory. Village Laundry Service, which is based in India, operates laundry kiosks to provide affordable laundry services to consumers based in India's metropolitan cities, the company said in a statement. In a country where laundry is either done at home or by local washer men called 'dhobis', the company hopes to create a market for laundromats, which offer consumers a chance to get their clothes washed for a small charge similar to a dry-cleaning service. The company so far has its presence in three cities including Mumbai and Bangalore. […]
India is likely to see private equity investments to the tune of USD 10 billion in 2011, especially as more companies look beyond capital markets to meet their funding needs, according to global consultancy E&Y. Sluggish stock market trends and increased investor activities are resulting in higher Private Equity (PE) investments, which was close to USD 4.5 billion till May, 2011. “… the current activity and deal pipeline suggests that we could see similar number as in 2008 (close to USD 10 billion),” Ernst & Young Partner (PE) Mayank Rastogi said about expected private equity investment in 2011. […]
If numbers tell a story, then this is a telling one about private equity exits in India, which are getting difficult even though investments and new funds are picking up. Fathom this: There were 72 PE exits valued at $2,226.61 million in January 1 to June 13, 2010, while the corresponding period for 2011 has witnessed only 47 exits valued at $1,296.21 million. Exits are important for a PE firm, as it allows the firm to generate returns to give back to its limited partners (investors in the fund) and is an indicator of successful fund management. While open market, M&A and secondary exits have all tanked, open market exits have particularly felt the pinch. VCCEdge data reveal there have been just 13 open market exits, valued at $133.82 million, in 2011 — nearly half of the 25 exits for $376 million seen in the corresponding period last year. M&A exits this year were just 12 against 22 deals in 2010 in the corresponding period. […]
It seems the small fish is eating the big fish in the private equity industry in India. And why not, when there is more food for thought available for the small fry, thanks to the biggies that choose to ignore! According to reports, private equity in India is a small deal market with the average deal size of a meager USD 26 million. Attractive deals in this market are too small for large global funds who ideally like to make big ticket investments in line with their large fund size. The growing demand for these small ticket transactions in the USD 100-400 million range is prompting top executives from large fund houses to quit and turn entrepreneurs. A KPMG report states that the year 2010 saw the emergence of independent PE fund managers who bring their global expertise into the local arena. Several seasoned PE professionals left their jobs with PE institutions to go independent by setting up their own investment management business. […]
Caparo Energy (India) Ltd, a wholly-owned subsidiary of the AIM-listed Caparo Energy Ltd, today announced that it has secured the first tranche of $78.5 million (Rs 350 crore) funding from The India Infrastructure Fund managed by IDFC Project Equity Company Ltd. It described this as mezzanine financing which is in the form of preference shares with a six-year term. Morgan Stanley acted as the advisor for the transaction. In addition to this, the company hinted that it is at an advanced stage to raise another round of funding of $33.5 million (Rs 150 crore) on similar terms. Caparo Energy (India) has announced plans to set up a series of wind energy farms in the country. Along with its existing resources, the company would be able to set up 700-MW of wind projects, it said. […]
U.K.-based private equity fund, Henderson Equity Partners, has invested $10 million in Delhi-based development sector consultancy, Infrastructure Professionals Enterprise Global Pvt. Ltd. (IPE Global). It has picked up a 26% stake with the investment from its second Asia Pacific fund. IPE Global, set up 12 years ago by London School of Economics alumni, assists development and aid agencies, public sector clients and not-for-profit organizations in implementing socio-economic projects across the developing world in South Asia, parts of Africa and West Asia. While nearly 80% of the business comes from India, the company is looking at setting up two offices in Africa. Managing director Ashwajit Singh said IPE Global had grown 45% over the last five years and currently employed 300 people. It had revenue of 900 million rupees in the fiscal year 2010-11. […]
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