Current State of Private Equity
A lot of optimism and all the hype and the hoopla revolving around the stock Market did pep up the Indian stock investors when the Modi Regime came on full-throttle in May. But private equity funds in India aren't exactly having their time of the year.
Despite the spate in the stock market, many investors are still struggling to get out of the investments that they made a few years back when they were rather hopeful about the top private equity firms in India making a mark. But, with slow return of capital, the issue hasn't been really easy to handle.
A lot of it has to do with the economy that has slowed down tremendously, probably in its worst play, in the last decade. Also with the sharp decline in rupee, Indian Private Equity hasn’t had the kind of returns that global investors actually expected in the first place.
Yet, investors and stake holders are full of hope. Brushing aside the cynicism galloping the industry, they say that are hopeful that as Indian economy gains steam, private equity firms will be able to sell their stakes. The companies would be able to sell shares and return the money to the investors. This can prove to be a great step ahead in gaining the lost confidence.
While the new government pushes private equity investors back on the map, many of them are still heavily reluctant to commit new money. All they want to do is wait and see the real performance come out through the companies.
Speculations are that if the private equity industry learns through its past mistakes and the Indian economy starts escalating, India's private equity industry can surely grow by leaps and bounds. There is still a glimmer of hope for the Modi Government, and the Modi wave to wade off the difficulties and bring in the returns that are expected and needed.
Despite the spate in the stock market, many investors are still struggling to get out of the investments that they made a few years back when they were rather hopeful about the top private equity firms in India making a mark. But, with slow return of capital, the issue hasn't been really easy to handle.
A lot of it has to do with the economy that has slowed down tremendously, probably in its worst play, in the last decade. Also with the sharp decline in rupee, Indian Private Equity hasn’t had the kind of returns that global investors actually expected in the first place.
While the new government pushes private equity investors back on the map, many of them are still heavily reluctant to commit new money. All they want to do is wait and see the real performance come out through the companies.
Speculations are that if the private equity industry learns through its past mistakes and the Indian economy starts escalating, India's private equity industry can surely grow by leaps and bounds. There is still a glimmer of hope for the Modi Government, and the Modi wave to wade off the difficulties and bring in the returns that are expected and needed.
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