PE firms see returns rise in ’13, hurdles to fund-raising
“The outlook for PE in 2013 and 2014 is obviously challenging for fund-raising. I would say the industry is optimistically cautious as the scenario looks better than the last two years,” said Gulpreet Kohli, managing director at ChrysCapital Investment Advisors. “Exits will be good only if the IPO (initial public offering) market picks up and the few IPOs in 2012 are test cases for future prospects.”
“If the IPO market improves, you will see several exits through these. Several of the PE portfolio companies have filed their documents with Sebi (the Securities and Exchange Board of India) and are ready to go to market when there is a decent window,” said Vikram Utamsingh, head of transactions and restructuring and private equity advisory at consultancy firm KPMG India.
There was one IPO listed in November, which raised $1.56 million from the public. The total amount raised through IPOs between January and December 2011 was $1.20 billion from 30 IPOs, according to the latest Dealtracker report by consultancy firm Grant Thornton.
“There are a lot of opportunities for PE firms in India next year because there is bound to be a shortage of capital here. Also, the days of lobbying are over and most of the sectors are open to foreign investment,” said a senior fund manager of a foreign PE fund.
“The number of quality
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