The importance of de-risking PE buyouts

PrivateEquity funds ought to consider forming consortiums. This will not only allow such investors to overcome capacity issues but also help distribute their risks

It’s certainly boom time in the private equity (PE) buyout space. In the year just gone by, India witnessed the value of PE buyouts rise to $5.5 billion -- the highest since the turn of the decade, and more than double the value of 2017. What’s more, the last quarter of 2018-19 is set to push that value up even further, surpassing the $6 billion mark.

Buyout opportunities have come and continue to come from large and small businesses alike. While large businesses are looking to sell their non-core specialisation segments — such as the buyout of Unilever’s spreads division