PE Fund Guide & News

Investing in real estate seems to be the most trending way of saving and tying up money these days. While older generations might already have property to their name, younger generations are beginning to invest in real estate early in their career and lives –with much prudence! So, seeing as investing in India Real Estate is so very popular, it’s obviously within good reason. If you’re looking into such investment, then here are a few reasons why it’s a good choice: •    Safe Investment: Real estate is such a market that’s not dominated by investors. This allows for a natural buffer being created in the market. Besides, unless faced with times of excessive recession, real estate values will always be good. •    Capital Growth: The most driving reason for people to invest in India Real Estate is that the value of a property will almost always grow over time. This will obviously be hugely beneficial for you, financially. Moreover, you can als...

We all know that private equity investment is like an umbrella where investments are made in different types of private companies. These private companies come up with different types of risks and offer different types of returns. Although the umbrella covers a wide number of firms, investment stills calls for the need of strategies while investing in private equity because you don’t want to bet all your hard earned money so casually. PE funds in India comprise of various stages of investment which require smart selections. Some of the elements of private equity strategies are as follows: •    Stage of investment: It is based on how long has a company been in the industry. You must have heard of the IPOs (Initial Public Offerings) generally known as venture capital. And then there are buyout companies which are mature companies and are generating cash flow already. •    Geography: It is based on what geography to target while investing in p...

Real Estate in India , seems to be a booming trade. But then, Starting your own business venture is not as easy as it sounds, it is very unlike the way it is projected in movies, a group of friends cannot fool people around the world and then become billionaires( Even if it is, there is a fair share of management and strategy that goes into its making) nor does it guarantee you a bed full of cash in fortnight, but rather takes calculated steps and planning to reach to a level where your profits and losses are balanced and the business then stays steady, growing slowly over a period of time. One of the foremost requisites of a business is Capital and investment. So let us study how to raise capital for the same and become a successful entrepreneur. •    Yourself: It is very rare to find start-ups where the founder contributes 0% of the capital. We are not saying that you have to rake in millions, but as much as you can with a fair share of backup ...

Experts say that investing in residential properties is one paradigm most investors are comfortable with. In fact it is convenient to invest in a residential property since it is easier to understand the whereabouts of the same. However on the other hand, it is a pain much to talk about investments in commercial properties, simply because it is a relatively mysterious field, says a leading real estate in India company   Here is an unraveling of various aspects related to investing in a commercial property: -Styles Commercial property specifically consists of three types mainly: ·          Retail ·          Office ·          Industrial -Return on investment It is always a smarter move to invest in commercial property owing to the fact that it is relatively low on risk but is low on investment as well, explains an expert in re...

Real estate provides an interesting and much needed alternative to mainstream investments as it is one of the few sectors that have outperformed inflation and slack in GDP over time. However, homeowners cannot deny the risk property deflation seems to pose. Fortunately for investors, there is a healthier alternate, real estate funds in India, which doesn't give the security of ownership but guarantees better risk management. The follow-up of the blog delves into the risks and advantages of it. What is it? Real Estate Funds in India mean a professionally managed and privately raised pool of fund that will be used to invest in diversified real estate holdings. Here you are one of the private investors whose money is combined and invested in an array of projects. Thus, you are not committed to a single venture but your money is spread around multiple projects.  Rewards ·          Minimum commitment with the ventures an...

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...

-Affordability Quotient Investors don’t really need a huge amount to enter the real estate funds . They can start with a minimum fixed investment value and can go ahead with buying units on secondary market just after the funds are launched. It is in this way that the investors can participate in the income from the large-scale property development without having a need to invest in a big amount in the property itself. -Inflation Hedge The returns from real estate in India or anywhere depends largely on the rent as acquired from the tenants. There are some leases which have a scope for rent increment to be indexed to inflation.  In other cases of rent, a rent is increased whenever the lease expires and it needs to be renewed. Anyways income from real estate generally increases in an environment of inflation so that the investors can maintain their income from the returns. -Diversification Value Since the real estate returns have a relatively low de...