| The billion dollar private equity club is growing. Notwithstanding the presence of pure play PE majors, banks are also raising $1 billion India-focused funds through their PE arms. |
| Hongkong and Shanghai Banking Corporation (HSBC), which has global assets running into trillions of dollars, is the latest one to come into India with an estimated $1.1 billion for growth stage companies and real estate ventures. |
| According to company officials, HSBC India has recently raised a $500 million realty fund, which will run parallel to the growth fund investments in the range of $600 million. |
| Naina Lal Kidwai, group general manager and country head, HSBC India, said, “At the Asia PE fund level, of which India is an arm, we have recently closed a $1.5 billion fund. According to our estimates, 40 per cent of that is expected to be committed to India.” |
| HSBC, which has been a low-key player in the Indian PE space, is pressing on the pedal as global money is rushing into India to take advantage of the high-growth Indian companies who are delivering good results year after year. |
| Global blue chip names such as Blackstone, Texas Pacific Group, Kohlberg Kravis Roberts & Co, George Soros Foundation are all pumping iron to take a bite into this growing market. |
| “Compared to the pure play PE giants, yes we have been not been much in action so far in India,” admitted Kidwai. |
| HSBC is stepping into the realty front at a time when global fund flows to this sector is under scrutiny by the regulators. According to independent estimates, the real estate sector has absorbed close to $3 billion of the total $10 billion PE invested funds. |
| “HSBC will be jostling with the likes of JP Morgan, Citigroup Venture Capital, Temasek and others in this highly competitive market, which is witnessing a tremendous boom given the rising aspirations of Indian citizens and strong growth fundamentals of the corporate India,” noted an industry analyst. |
Source: Business Standard