2010 can be a Good year for PE Investments

Jan. 6, 2010 - PRLog -- Private equity investments in India, which saw a sharp dip in 2009, could bounce back in 2010 with several large global and local funds in active talks with promoters and managements of firms to put in money. Private equity fund managers, or PE fund managers as they are popularly known, and investment bankers say this year could see increased activity at various levels as several Indian companies have reported robust results despite a testing economic environment. Besides fresh investments and divestment in existing companies, PE funds could also partner Indian companies for global acquisitions and also local buyouts.According to Venture Intelligence, a research service focused on Private Equity and M&A, deal flows plunged to $3.82 billion in 2009 from $10.2 billion in 2008 and $13.6 billion in 2007. Private equity investment tapered off in 2009 as fund managers turned cautious. Of the two sectors that had chased private equity capital — real estate and power, there were policy issues related to FDI in realty while in the power sector, valuations were too high, says Rajeev Gupta, MD and head of the India buyout team of Carlyle, one of the global biggies in the business.

PE fund managers also chose to wait on the sidelines as equity valuations recovered too fast in the second half of 2009. According to Anil Ahuja, head of Asia-growth capital, 3i, from the second half of 2008, till around April-May 2009, money was not being deployed as everyone sought to conserve capital. “As PE investments gets benchmarked against public markets for valuation of their holdings, most PE funds were actually running serious losses. The natural response was to put new investments on hold and work more closely with portfolio companies. Also from July onwards, valuations were too high.” Says Ashok Wadhwa, group CEO of Ambit — a home-grown investment bank: “Many of the mid-tier corporates are looking to raise capital. However, PEs will face severe competition from public markets.”People like Ahuja believe that the Indian economy is “fundamentally sound and is sitting on a sweet spot. It’s a good place to be in and 2010 could see more deals if markets continue to be stable.” Gupta of Carlyle feels that in 2010...http://www.maaproperties.com/Pages/ModuleContent.aspx?Mod...

At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI)For More Information about Real Estate Hyderabad, India visit: http://www.maaproperties.com/

# # #

Maa properties provides property related transactions in Hyderabad like buy, sell, rent, lease, providing tenants, maintenance for nris under three services property deals, property analysis and property care.