LPs ready to invest $3 billion in the current fiscal
Many private equity (PE) funds like CX Partners, Multiples Alternate Asset Management, IVFA, Everstone and Exponentia Capital are trying to raise at least $3 billion (Rs. 17,700 crore) in the next 12 months.
In interviews with media the spokespersons of these companies stated that post the formation of the new government the market sentiments have changed. Mr P.R. Srinivasan, founder and managing partner of Exponentia Capital stated that the limited partners (LP) are now ready to invest in the PE funds.
Prakash Nene, managing director & CFO at Mutliples Alternate Asset Management mentioned that the investors they have been chasing for over a year are now ready to give considerable thoughts in putting in their money. Multiples Alternate has also started gauging the investor interest by doing ‘’soft marketing’’ or ‘’mystery shopping’’. Nene declined to reveal how much he plans to raise through these fund raising initiatives, the industry sources estimate it to be a large corpus of around $500 million.
Many other PE funds commented about their fund raising strategy. One thing is for sure; the LPs will be selective and will invest only in the companies with a proven track record. They have had a bitter experience in India in the past few years. The existing investors did not get a return on their investments and recovering the capital has also been a huge challenge. The currency fluctuation was very frequent and macroeconomic policy changes were poor.
Source- The Economic Times
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