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PE In Emerging Mkts To Be Affected By US Slowdown

Private equity managers going into emerging markets in search of higher returns or in hopes of avoiding the global credit crunch won't escape the impact of a U.S. recession, the president of the Emerging Markets Private Equity Association, or EMPEA, said Thursday. “At a minimum, a U.S. recession will negatively impact growth prospects for some, if not many of the companies in a fund manager's portfolio,” Sarah E. Alexander said at an EMPEA conference in New York. But investors who got burned in emerging markets during the early 1990s recession should take comfort in the “fundamental shifts” and growth that emerging market economies have experienced. “Let me convince you that a crash is highly unlikely,” she said. Many private equity managers have a lot riding on these fundamental changes. Last year, the private equity industry raised more than $59 billion for investments in emerging markets, a record and nearly double the amount raised in 2006, according to EMPEA data. […]

Gujarat venture fund raises Rs.600 mn for small firms

Gujarat Venture Fund Limited (GVFL) has raised Rs.600 million for its SME (small and medium enterprises) Technology Venture Fund. “The fund would be used for investing in various projects of both small and medium technology companies. GVFL plans to invest this entire fund in six to eight projects in a time period of one year with an approximate investment amount per project anywhere between Rs.5 and 15 crore (Rs.50 million to 150 million),” said Vishnu Varshney, CEO of GVFL, in a statement here Friday. GVFL plans to raise the entire corpus of its SME Technology Venture Fund to Rs.250 crore (Rs.2.5 billion) by 2009-10 from existing Rs.60 crore (Rs.600 million),” the statement said. “Venture capitalists invested over $777 million in 57 deals in India during the first three quarters of 2007, as per the India Venture Capital Report as against $158 million in 2006. […]

TELCON acquires 79% stake in Spain firm

Telco Construction Equipment Company Ltd (TELCON), leading construction equipment sector in India, signed an agreement with the existing shareholders of Serviplem SA, Spain for acquisition of their 79% stake in the company. As part of the partnership strategy, the existing owners will continue to be associated with the venture and own the remaining 21%. […]

Deutsche Bank picks up 40% stake in Ramprastha

Deutsche Bank has picked up close to 40% stake in Ramprastha Promoters and Developers, a group company owned by Delhi-based Ramprastha Group for $80 million. Ramprastha Promoters and Developers has been primarily engaged in developing housing projects in the national capital region(NCR). Confirming the deal, Ramprastha group director Arvind Walia told ET, “We signed the agreement with Deutsche Bank recently.” Mr Walia didn’t specify the stake Deutsche Bank has bought, but he said it was less than 40%. Ernst & Young advised Ramprastha on the deal. In the largest private equity deal in real estate sector, Deutsche Bank had picked up around 25% stake in a special purpose vehicle (SPV) owned by Mumbai-based developer Lodha Group for Rs 1,700 crore, last year. Currently, Ramprastha Promoters and Developers is developing a 200 acre township in Gurgaon. The land for the project has already been acquired. […]