May 2010
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Ashmore, PTC India in $750 mln energy infra fund

Emerging markets fund firm Ashmore said on Thursday it has launched a fund jointly with power trading firm PTC India that aims to raise $750 million to finance power projects across all energy-related sectors in India. India's power sector, beset by a peak power deficit of 12 percent, has struggled to attract foreign investment in recent years, but the tide seems to be changing. In March, a group of investors including Morgan Stanley's infrastructure arm, Goldman Sachs, and General Atlantic said it invested $425 million in Asian Genco Pte Ltd, which has stakes in power generation assets in India. […]

PE firms see bigger, simpler deals

About 77% of private equity players in the country expect an increase in investment momentum in the coming 12 months, according to a survey by Deloitte Touche Tohmatsu India. And the deals will be simpler. The report said 87% of respondents rated 'structured development capital' (in essence, a return to the traditional way of structuring development capital deals, using less leverage and a simplification of the structure) to be the key focus area for investment this fiscal. Following this are transactions in the venture capital, pre-IPO and buyout space, in that order of priority. “Some funds have committed a lot of private investments in public enterprise (PIPE) deals since 2007 and have suffered mark-to-market losses. We'll increasingly see a return to basics — back to structured development capital deals. However, PIPEs will continue to see activity given the lack of sizable development capital deals,” Avinash Gupta, head-financial advisory services for Deloitte Touche Tohmatsu India, said in the report. […]