Business Standard

Fund raising outlook for India private equity firms most negative: report

Myanmar, Japan and Africa emerging as new markets for the PE firms

Related News

India, which caught the fancy of the firms not many years ago, is no longer is in the wish list of the firms. Instead, countries not known much for being the hot bed of private capital are emerging as the new stops for PE firms.

In terms of fund raising, (Brazil, Russia, India, China and South Africa) witnessed the steepest decline since 2011, with the Indian PE firms having the most negative outlook on the ability to raise new funds, says a recent report on trends in private equity by Grant Thronton.

At the same time, countries like Myanmar, Japan and Africa have emerged as new markets for the PE firms.

“This time, last year, for example, it would have been hard to imagine Myanmar being highlighted as frequently as it has been this year in the market, with considerable potential for private equity investments,” says the report.

Likewise, the strengthening of yen has prompted a wave of interest in acquiring foreign business. 

Again, Africa, which has the image of last frontier for PE firms, has attracted lot of attention from South Africa and MENA, said the report.

Among the BRICS nations, China and witnessed a substantial downturn in terms of investor confidence.

India is under more than one economic pressure, with political burdens and policies having an adverse affect on investor sentiment, according to the report.

Overall, the top four sectors for PE in 2012 so far have been consumer, healthcare, business services and industry and manufacturing.

Also, in India, the cooling off of overheated public markets in recent days is expected to translate into falling PE multiples, the report said.

Read more on:   
|
|

Fund raising outlook for India private equity firms most negative: report

Myanmar, Japan and Africa emerging as new markets for the PE firms

India, which caught the fancy of the private equity firms not many years ago, is no longer is in the wish list of the firms. Instead, countries not known much for being the hot bed of private capital are emerging as the new stops for PE firms.

India, which caught the fancy of the firms not many years ago, is no longer is in the wish list of the firms. Instead, countries not known much for being the hot bed of private capital are emerging as the new stops for PE firms.

In terms of fund raising, (Brazil, Russia, India, China and South Africa) witnessed the steepest decline since 2011, with the Indian PE firms having the most negative outlook on the ability to raise new funds, says a recent report on trends in private equity by Grant Thronton.

At the same time, countries like Myanmar, Japan and Africa have emerged as new markets for the PE firms.

“This time, last year, for example, it would have been hard to imagine Myanmar being highlighted as frequently as it has been this year in the market, with considerable potential for private equity investments,” says the report.

Likewise, the strengthening of yen has prompted a wave of interest in acquiring foreign business. 

Again, Africa, which has the image of last frontier for PE firms, has attracted lot of attention from South Africa and MENA, said the report.

Among the BRICS nations, China and witnessed a substantial downturn in terms of investor confidence.

India is under more than one economic pressure, with political burdens and policies having an adverse affect on investor sentiment, according to the report.

Overall, the top four sectors for PE in 2012 so far have been consumer, healthcare, business services and industry and manufacturing.

Also, in India, the cooling off of overheated public markets in recent days is expected to translate into falling PE multiples, the report said.

image

Read More

BSE launches carbon index

Premier bourse BSE, in collaboration with the UK government, today launched BSE Carbonex, the first-of-its-kind index in India or any emerging market ...

Recommended for you

Advertisements

Quick Links

Market News

Brent crude steadies above $65

Brent crude reversed early losses to steady above $65 on Monday as signs that US shale output may have started to decline offset the effects of ...

Today's picks- 27 April 2015

Nifty, Bank Nifty, Cairn & Bharti Airtel

Pulses, oilseeds trade gets relief from stock limits in Maharashtra

However, prices are likely to rise, given the possibility of stock building by large traders

CME, ICE plan exchanges at GIFT City IFSC

Looking to partner exchanges that have shown interest

BSE moves 122 cos on Vadodara SE to dissemination board

Among the vanishing companies are Addi Commercial Enterprises, Anand Dairy, Baroda Dying, Gujarat Apparels, Zen Shaving and Rainbow Housing ...

 

Back to Top