Private equity experts and investors in India describe a unique developing market where even with bountiful capital and few opportunities for anything but minority shares the sector is profitable and a key to harnessing the country's tremendous entrepreneurial energy
Across the skyline of India's cities, countless cranes and towers of bamboo scaffolding offer testament to the building of a new economy. "India is in the middle of a high growth phase," says Ashish Dhawan, co-founder of ChrysCapital which manages $2.5 billion in six funds. "We're starting from a low per capita income and we've yet to reach middle income status. If you look at that macro backdrop—8% real growth, 13% or 14% nominal growth—the appropriate role for private equity is really to provide growth capital for companies that are serving the consumer."
[This article has been reproduced with permission from Qn, a publication of the Yale School of Management http://qn.som.yale.edu]