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Showing posts with the label Private equity firms

Advantages Of Investing In Real Estate

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Real estate investments, although big in amount, yields lucrative returns and has long term profits. It generally buying a property and renting it out, leasing it out, or re-selling it to another party at a higher price. Despite of a margin of risk, there are several benefits that one can gain from investing in Real estate in India , have a look at them: Steady Income If the property bought is converted rented out soon, the owner has a guaranteed monthly income. Depending on the location of the property, one can procure a good amount as rent. If it is on situated on the main road, in the city, close to transport options like metro, bus etc. they automatically make the property expensive. So, someone renting it out would be in a position to quote more money. With population explosion in our country, people are continuously looking for a place to live. Migration is one more reason why people look for rented apartments or houses. Security of property possession Owning a ...

Types Of Real Estate

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Looking at the real estate market in India requires more than just a quick, fleeting study. One of the most prominent of all concerns and issues, which is often shirked with neglect, is the type of property that one must consider buying. Investment in real estate fund India needs to be one wary decision. You must ask yourself the kind of real estate property that you would want to have—residential homes, shopping malls, warehouses, office towers or any of these. One can’t simply assume that one kind of property will continue to be a good investment just because it has performed well in the past. Income-producing and non-income producing investments: There are largely four broad types of income producing real estate—offices, retail, industrial and leased residential. The other common types are hotels, mini storages, parking lots and care homes.  They all are key income producing investments.  Non-income producing investments normally encompass vacation pr...

Current State of Private Equity

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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 ec...

Drivers of Private Equity

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Private equity in absolute terms is a means to invest in a type of asset which is not generally publically traded and even if it is public it is traded with the intent to make it private. Unlike other market variables like stocks and bonds amongst other, private equity formation takes place in the form of assets which are not liquid (companies).  By buying companies the private equity firms ensure an access to their revenues and assets thereby having high return on their investment for the future. The transaction of their firms is highly dependent on debt which is usually in the form of high-yielding bonds. With the inclusion of debts to their finance acquisitions, these firms ensure an increase to their financial returns.  This debt which has a fixed cost to it is a great way to have high returns plainly because with the high return on this investment, the profit is directly affected after the sale of these fixed cost debts. Having understood the way p...