PE Fund Guide & News

Some of the globe’s top Private Equity firms have gone in losses by raising Private Equity funds in India, reason being administration issues in investee companies. On top of so many unsuccessful investments made between the years 2005 and 2008, the private equity investors were not even given adequate and their due post-investment rights. The matter further worsened because of poor reporting to  private equity funds in India as well as investee firms’ languid attitude towards investing in systems, procedures and controls. So what are the lessons that Private equity firms have learnt by investing in India? Top professionals from the field list some out for us: Know your company Prior to investing, make sure that the performance of a company is in line with what’s projected by it. The executive might cite excellent results and share price might also seem to go up just before the PE investment is made, however there is no guarantee if the speculated evaluations ...

Private equity investing, largely attributed as “investing in securities through a negotiated process” is fast emerging as the alternative to investment in the institutional framework. Private equity calls for a specific and a specialized skill set which largely accounts as the diligence area for investor’s assessment of a manager. There has been a spurt in the spectrum of investors in private equity because of the need to rapidly include different types of investors to adhere to the long term commitments to the asset class. The commitments enable the investors to seek a level of geographical diversification in their private equity portfolios. The fundamental reason for investing in private equity funding is to improve the possibility of risk for investing in private equity offers an opportunity to generate higher absolute returns to the investor while also improving upon the portfolio diversification. Inflation results in an escalating focus on growth stocks. A...

Young organizations that may be looking to expand their venture should get straight down to business as the time is just right to raise growth capital in India. Raising capital for growth is crucial for further expansion of any business organization. It’s critical for facility expansion, carrying out sales and marketing initiatives, purchasing equipment, and developing new products. The growth capital can also be utilized for restructuring of the balance sheet. It is often raised through PE funds in India, although it can be acquired from various other sources. A boom in PE investment marks the long-awaited revival of the investment cycle which is now expected to contribute to the development of the nation’s economy, as per a report analysis published by Business Standard. The report said that PE funds in India will likely reach an astounding figure of 40 billion US dollars over the next decade, by 2025. It also says that a more mature phase of investing is on way w...