The bearish market may have made retail investors cautious, but it has encouraged private equity funds queue up to invest in Indian companies, as it helps them leverage a reasonable valuation. In a bullish market, companies wanting to raise funds through private equity placement commanded an exaggerated valuation. But they cannot do so now, in light of the weak sentiment. However, this has made international equity fund houses, which had adopted a 'wait & watch' policy, keen on investing in the same companies. According to Sunil Shirole, managing director and CEO, YEN Management Consultants, around 360 foreign private equity funds (registered with SEBI) have accumulated a whopping $60 billion with their onshore offices to invest in Indian private companies. Other international PE houses are also warming up to invest in India through the automatic FDI route. […]