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With global investors buying into the India growth story, the size of private equity deals in the country has doubled in the last two years. While the average private equity deal size was $15-16 million in 2005, it jumped to $25 million in 2006 and $30.8 million in the first six months of 2007, according to data from research outfit Evalueserve and professional services firm Ernst & Young. Experts say this is because of a larger number of players entering the Indian market. There are 461 funds operating in India now, against less than a hundred two years ago. […]
Financial services boutique firm Atherstone Group will float a $75 million (Rs307.5 crore) fund raised from European investors to make early-stage investments of $1-4 million apiece in Indian companies. “This fund is being raised by us from European investors, leveraging the networks of our partners in Switzerland, Poland and the United Kingdom,” said Gurunath Mudlapur, a co-promoter of the Atherstone Group. The fund will concentrate on making investments in small- and medium-sized enterprises (SMEs), which require funding to take their business to the next level. The firm hopes to make multi-bagger returns by focusing on a market segment that has significantly less competition than bigger deals running into tens or hundreds of million dollars. Currently, firms such as Swiss BTS Investment Advisors and Clearstone Venture Partners focus on these kind of early-stage investments in India. […]
The country’s two largest home-bred private equity (PE) firms, ICICI Venture Funds Management Co. (ICICI Venture) and IL&FS Investment Managers Ltd (IIML), are in the middle of a major reinvention exercise. While ICICI Venture, which manages over $2 billion in capital at present, is preparing to become a limited partner (an investor in other private equity funds), IIML, with about $1.5 billion under management, is looking overseas, especially the West Asian region, to expand its investment activities. The independent moves by the firms come at a time when the Indian private equity market is seeing an unprecedented inflow from big-ticket global PE firms. […]
The elephant has pipped the dragon on the private equity (PE) turf for the first time. The country bested China in private equity investments for the first six months of 2007, and currently ranks second on the Asian (including Japan) PE investments chart. PEs continued to buy the India story while a few Asian favourities like South Korea saw setbacks. According to Centre for Asia Private Equity Research data, India has seen $3.7 billion in PE investments during January-June, 2007. This puts it just behind Japan, which drew PE funds worth $4.91 billion, but ahead of China’s (including Hong Kong) $2.6 billion in the same period. “For the first half (H1) of 2007, Australia has dropped from last year’s first position to sixth this year, with Japan being number one, followed by India and People’s Republic of China,” says Centre for Asia Private Equity Research MD Kathleen Ng. […]
Kerala-Based Catholic Syrian Bank is on course to have new investors on board — a clutch of private equity funds. AIF Capital, one of the largest Asia-based independent private equity funds, is now buying into the old private bank which has been a target of takeover attempts in the past. The bank is now planning a preferential issue of 5% to the fund at Rs 190 a share, according to sources close to the development. Three other private equity funds are also on course to pick up an additional 13.5% stake through the preferential offering. CSB will make a preferential allotment of shares aggregating 4.5% each to three other private equity funds. The proposal is now before the banking regulator the Reserve Bank of India. AIF Capital has an exposure to the local banking sector through its acquisition of a 5.3% stake in Yes Bank. […]
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