Get savvy about the biggest private equity deals over the last year, the biggest dealmakers and what Venture Capitalists look for when zeroing in on potential start-ups! Also in this package, meet the stalwarts at Saif Partners and Bessemer Venture Partners to get a grip on their India strategy. Plus, columns by entrepreneurs who made it big with timely PE investments...
Remember the March 2005 $560 million Warbug Pincus – Bharti Tele-ventures deal? In total, Warbug Pincus infused $300 million
into the company and by the time the Private Equity (PE) firm exited Bharti Tele-ventures, it had mopped up a staggering $1.3 billion. Overnight this deal thumb tacked India as a Mecca for global PE investments. Not that PE players did not operate in India before this, but Warbug’s bulging back pocket at the time of exit did take the lid off India as a hot PE destination. If the proof of the pudding is in the eating, merely glance at how the value of PE deals skyrocketed between 2005 and 2007. From $2,183 million in 2005, total value of deals jumped to a staggering $17.4 billion in 2007 (see table), an increase of a jaw dropping 744%.
Interestingly, while PE investments and Venture Capital (VC) funding are clearly demarcated propositions in the USA (where VC funding only refers to investments in early stage and expanding companies); in Europe, VC funding covers all stages. Traditionally, PE players can be described as firms that invest in companies, which already have some revenue base and have future growth potential via restructuring or bringing in new products, services and technology.
However, a cross-section of market watchers opine that in emerging markets like India, the distinction between the two is increasingly blurring and both these terms are used synonymously and as proxies. According to Harish H V of Grant Thornton, “In India, PE is understood as capital being invested typically through a LP (Limited Partnership) structure by domestic and international institutions to take reasonable stakes in unlisted and listed companies through private placement and also buyouts.” For the purpose of this listing of the biggest deals in India over the last year, we will use the term Private Equity to describe the industry in its entirety.
Remember the March 2005 $560 million Warbug Pincus – Bharti Tele-ventures deal? In total, Warbug Pincus infused $300 million
into the company and by the time the Private Equity (PE) firm exited Bharti Tele-ventures, it had mopped up a staggering $1.3 billion. Overnight this deal thumb tacked India as a Mecca for global PE investments. Not that PE players did not operate in India before this, but Warbug’s bulging back pocket at the time of exit did take the lid off India as a hot PE destination. If the proof of the pudding is in the eating, merely glance at how the value of PE deals skyrocketed between 2005 and 2007. From $2,183 million in 2005, total value of deals jumped to a staggering $17.4 billion in 2007 (see table), an increase of a jaw dropping 744%.Interestingly, while PE investments and Venture Capital (VC) funding are clearly demarcated propositions in the USA (where VC funding only refers to investments in early stage and expanding companies); in Europe, VC funding covers all stages. Traditionally, PE players can be described as firms that invest in companies, which already have some revenue base and have future growth potential via restructuring or bringing in new products, services and technology.
However, a cross-section of market watchers opine that in emerging markets like India, the distinction between the two is increasingly blurring and both these terms are used synonymously and as proxies. According to Harish H V of Grant Thornton, “In India, PE is understood as capital being invested typically through a LP (Limited Partnership) structure by domestic and international institutions to take reasonable stakes in unlisted and listed companies through private placement and also buyouts.” For the purpose of this listing of the biggest deals in India over the last year, we will use the term Private Equity to describe the industry in its entirety.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
No comments:
Post a Comment