A slowdown in private equity(PE) dealmaking in India has not altered the plans of new PE firms including some bulge-bracket funds to set shop here. The latest to join the group is US billionaire Leon Black’s Apollo Management, which has appointed an Indian expat based at its UK unit to head the Indian operations. The firm joins a group of fund houses such as European buyout major Candover, Englefield Capital and Babcock & Brown.
While a few of these new players have roped in the talent available within the country to head their businesses, others are bringing executives from across the shores. US-based Apollo Management has appointed one of its partners from the UK unit, Mintoo Bhandari, to head the India operations. According to sources, he is in the process of putting together a team in Mumbai.
Globally, Apollo is estimated to have an asset base of more than $20 billion. Its portfolio includes companies like Linens n Things, the second largest home furnishing retail chain in the US, besides AMC Entertainment, which is America’s second largest theatre chain, and Countrywide (UK). It focuses on underperforming companies and distressed assets. Some of the sectors in which it has invested include chemicals, supply chain management, BPO, media, healthcare and transport.
Although Apollo typically targets investments ranging between $20 million and $250 million, the deal size gets even bigger at times. Early this year, it joined hands with another buyout major TPG to acquire US casino operator Harrah’s for $17 billion. Apollo is joined by a number of other new funds.
Another entrant Englefield Capital, a UK-based independent PE firm, has appointed Dinesh Vaswani, to co-head its India operations. Mr Vaswani, who has a history of working with various VC and PE firms in India including Bessemer Venture Partners and Walden, will work with Jerome Mourgue D’Algue who has moved from the firms’ London office.
The PE firm is learnt to have earmarked close to $800 million for investments in Indian and the US markets. Globally, it has committed equity funds of € 1.760 billion which includes investments in buyouts and development capital.
It is joined by another European firm, Candover. The UK-based buyout giant has roped in Harsha Raghavan, head of principal investments area at Goldman Sachs, to look after the India business. Incidentally, Candover which is in the process of adding people to its core team to be based in Mumbai, had only recently set up its maiden presence in Asia with an office in Hong Kong. Similarly, Australia’s investment and specialised fund and asset management group, Babcock & Brown, recently opened its India unit by hiring eight key managers from ABN Amro India.
• Apollo Management has appointed one of its partners from the UK unit, Mintoo Bhandari, to head the India operations
• Globally, Apollo is estimated to have an asset base of more than $20 bn.
Source: Business Standard