November 2008
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PE funds ‘top up’ to average out their investment costs

PE firms are aggressively topping up earlier investments made in listed companies at a time when valuations are at a fraction of what they were a year ago. Among the big firms scooping up equity in listed entities to average out costs are ChrysCapital and Singapore-based Orient Global which have made direct secondary market investments. Also See Value Adds “There are some very attractive valuations. The corrections have taken place and depending on our investment thesis, we have an opportunity to take a position in listed companies, and top it up, too,” said Sanjiv Kaul, managing director of ChrysCapital, while declining to provide further details. Others such as Standard Chartered Private Equity Ltd and Blackstone Group Lp. have also been buying, the only difference being that these have had some promoter-level engagements at an earlier stage. […]

PEs pick up 80% stake in GEAR

Two private equity firms — US-based Berggruen Holdings and UK-based Cycladic Capital — have picked up close to 80% stake in construction equipment service provider Gemini Equipment and Rentals (GEAR) for around $15 million (nearly Rs 74 crore). “This is part of the first round capital-raising programme. The proceeds will be utilised for expansion,” said GEAR managing director Rajiv Sethi. The construction equipment industry is growing at the rate of 35% and is likely to expand fivefold by 2015. The critical role of the industry in the infrastructure development has opened huge opportunity for entrepreneurs to enter the construction equipment rental business. […]