PE funds to invest aggressively in India- Speculate global consulting firms like E & Y, Bain & Co and Cushman & Wakefield
Even though the market sentiment and the stock market has improved after the formation of the new Modi led government and the manufacturing and service sector is hopeful about the rising GDP, the private equity (PE) firms are still playing safe. They are cautious about the return on investment expectations and exit from old investments worth $6.8 billion as well as fresh investments in India.
A large section of investors is looking forward to the revival of the primary market so that they can negotiate for better exit opportunities. It is speculated by the market leaders that only $3 billion of the $12.9 billion invested in 2007 is likely exit in 2013**** Out of $9.2 billion investments made in 2008, investments worth $4.4 billion found an exit door last year.
However as per Ernst & Young’s (E & Y) global survey report, India is considered the top investment destination by the PE firms now. 70 of the PE firm respondents who participated in the survey are hopeful about this trend and bear this impression. India was considered more attractive, ahead of the US and Canada in terms of investments from the PE firms- a report published by E & Y in May stated that.
Arpan Sheth, head of the India private equity practice of Bain & Co, another global consulting firm, mentioned that he was cautious however speculates optimistic growth in investments by PE firms in the current financial year 2014.
Cushman & Wakefield, realty consultants firm mentioned in their report that in the January-March quarter, PE funds invested $460 million, nearly 2.5 times the investment in Q1 2013.
Source- The Hindu Business Line
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