PE Fund Guide & News

The top most benefit of real estate is that ensures consistent total returns which are a cross of income and growth in capital. The income returns from the real estate funds is directly linked to the payment of rent subtracting the operating cost of the property and outgoing mortgage or financial payments. However if you lose tenants there comes a time when don’t have enough funds to cover the building operations cost and so it is essential you keep the property as occupied and full as possible. The capital appreciation of the property is ensured by having the property appraised. In case the appraiser feels that the property would sell for more than what you bought it for then you have hit the correct place by achieving positive capital return for real estate fund India . Other characteristics of real estate investments are: -No fixed maturity Unlike a bond equity real investment has no maturity date. This feature of real estate allows the an owner to buy a prope...

The Indian demography shows that every year a fleet of new tax payers join in the brigade. Much more than a mere figure, it reflects India’s youth empowerment. It highlights that in a country where only 2.7% of the population pays their income tax, times are improving: a manager at Private Equity firm in India puts forward an optimistic approach. However, he agrees that still putting high-net-worth investments in mainstream is a far-fetched dream. Though, the nation’s economy is on an upward journey yet majority lies beyond the minimum taxation limit. And the FM’s report tells us that most of the tax burden is born by the salary class. So, evidently, the honest taxpayer can’t spare much for long-term high-risk investment ventures such as private equity funding and REIT’s. In fact, savings and investment even at a small scale is not really a priority, which is again neither good for individual growth nor the economy. So, it is imperative to educate the young of the importance of...

Whenever you are searching for an underlying real estate property one of the most significant criteria apart from the location is obviously the property. When a buyer considers a purchase he probes into knowing what the property type is, if it is a warehouse, residential home, shopping mall, office structure or a blend of any of these types. Every type of real estate India has its own set of drivers which directly affects the performance. It is a mistake that you consider a particular type of property will do well in a specific area if another type of property is flourishing in a particular place. In the similar light you can’t be complacent if a certain property is a fine investment it will continue to be one for years. Based on real estate fund India the investments in these properties are divided into two broad categories which include income-producing investments and non-income-producing investments. The interest area being income-producing ones, these are further divided into f...

What are Private Acquisitions, I ask? A Private Acquisition is a process in which one company called the acquirer takes over, or buys another company, called the target through the purchase of the target’s company’s equities.   As evident from the definition itself, private acquisitions are normally spurred by the seller’s desire to do away with the company rather than a purchaser’s desire to pitch in and buy one. It is all on the seller whether he makes a lucrative deal out of it or not. Ways in which a private equity firm can strike a profitable deal out of it are: Transformational mergers arise out of either need or negotiation, and in certain cases, both. In order to spruce up the strategies and the execution that follows, which culminate into higher, profitable returns, transformational mergers are paving way for favourable, pragmatic returns.  Then there is a separate set of companies that take mergers as a way of pepping up the competition. Unless the...

Introduction of the real estate funds came as a happy call and have paved a gateway for small investors into the big league. Earlier, the only worrying factor was inexperience and big amount of money that was invested in the business parks. It’s been observed that institutional investors have consistently took interest and played major part and so as the Private equity. Unlike earlier when there were hardly a few investors who were familiar about Private equity fund , these days, with increasing competition and spanning genres, many investors are joining the league and are taking in keen interest to escalate the profit graph of company.  It’s acknowledged that for ambiguity, investors would hesitate in investing hard earned money, but contrary to earlier, nowadays, with tech advancement things have really changed. Varying from intricacies to the small detailing, each and every aspect of the financial world is elaborated in detail. But it’s not open to all and is r...

Private equity real estate funds- weighs too much for a single term, doesn't it? Gulping down the concept of PE real estate funds is never an easy deal, especially for a person who is planning to deal in it. So that brings us to first make the comprehension slightly easier. Private real estate funds provide a means to a real estate developer to access a pool of capital for making new investment deals. This dedicated pool makes investment easier as it eliminates the need of raising capital on deal by deal basis. The nature of investments is illiquid in Indian real estate , meaning that investments can't be readily converted into cash. Hence, there are many structural issues hinged to making investments in Private Equity. There are broadly two types of fund structures that are ruling the Indian real estate market in particular- open ended fund structure and close ended fund structure. Open ended fund structure makes it possible for the investor to enter or ...

As the term PE suggests it is a source of investment capital from sharp individuals and institution for the sole purpose of making profit by obtaining equity ownership in companies. Typically this investment is locked for a period of four to seven years. Having said so it is important to know what are the critical functions within a private equity firm: Deal Origination As the name suggests it is about striking a deal by managing a maintaining relationships with mergers and acquisitions, Investment banks, intermediaries and other such transaction authorities to ensure that these deals are hassle free and in continuation. There are some firms who often employ such staff who can identify prospective acquisitionist and then approach company owners to reach out for generating leads in transaction. The most important aspect of a private equity firm is that the funds raised are deployed and invested successfully. In addition to this the employees of PE firm also put efforts...