Despite regulatory challenges and macroeconomic uncertainties, 70% of general partners (GPs) expect fund-raising to be easier in 2015, says Bain & Company’s India PE report 2015. In fact, half the respondents plan to raise funds targeting investments in the Asia-Pacific. Most funds believe competition for deals will increase in 2015, with even minority stakes becoming coveted. Yet, the focus remains on building a strong track record via successful exits.
“In the year ahead, GPs in India expect a further increase in deal activity, propelled by macroeconomic conditions, positive investor sentiment and an improved exit environment. But they remain concerned about a mismatch in valuation expectations and the tough competition for good-quality deals”, adds the report.