After a year in deep freeze, private equity will flow again in 2010. Private equity firms in India will really need to differentiate themselves to get more respect from Indian promoters and make some serious money. Till now, PE firms here have punched below their weight
No. of Indian companies that received private equity funding
Guess which country in Asia has received the maximum private equity flows since 2004. China? Australia? Well, it is India. PE firms have invested $44.8 billion, which is $200 million more than what they invested in China during the same period. Now even though more than 1,300 companies have accessed this form of capital, PE firms have yet to make an impact proportional to their size in India. “PE firms have to find a place that defines them clearly in universe of financial entities like public markets, QIPs, banks and hedge funds that are present in the Indian market,” says Sri Rajan, partner, Bain & Company.
(This story appears in the 18 December, 2009 issue of Forbes India. To visit our Archives, click here.)