The Success Rate Of Private Equity In India

Private equity investment is the type of investment which helps firms and individuals gain some amount of control and many a times total control over other companies in search of good returns. It is type of investment which is done to take control of the private company or any public entity which is planned to turned private. Although the money used for investment is completely private it is used to take control of both public companies or private companies.

This industry has evolved a lot in last 2 decades and still the basic principles has remained the same over all these years. The firms invest in the company to buy the rights to the company and then the earnings are used to make the reverse payment to themselves. The number of deals in terms of PE funds in India has increased significantly in the past few years as a result of the startup revolution. Many large companies in India today thrive because of the timely support from large private equity firms and venture capitalists. 

Private equity firms have taken over the market and have purchased the stakes in companies in large numbers. They have even paid for them in premium which has higher value than what they measure in the market. The rate of private equity investment in India has grown so much because of global significance. The economic ups and downs in all the leading countries of the world has led the firms to believe that their investments can be powerful and is the need of the time.

Private equity investments are different from any other investments like Mutual funds or stock exchange. By the purchase or the partial control of the company they gain access to the assets as well as the revenue from the companies. The investment in private equity also uses a lot of debt to make the investment instead of their money as this factor can successfully be used to obtain better financial returns from the companies.