Private equity opting for fixed rate structure
Private equity firms are planning to deal with the real state builders for a fixed rate of return. They are looking for a deal where they will get first and assured shares in the return for against the investment.
Private equity firms are planning to opt the fixed rate loan structure of the banks. In this structure the PE firms will not be effected by the performance of the builders.
As the realty industry has a huge debt in the market and they are struggling to generate the cash flow from the existing projects, PE firms are trying to reduce the risk as well as want to secure the investment in the difficult time.
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Source : Hindustan Times
debt in the market, existing project, Fixed rate of return, performance of the builders, Private equity firms, real state builders, Realty industry
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