PE firms see returns rise in ’13, hurdles to fund-raising
There were a total of 378 PE deals in India amounting over $7.04 billion investment between January and November this year, according to Grant Thornton. Pharmaceuticals, healthcare and banking and financial services together received 42% of the total PE investments.
However, the opening of the public markets is a moment of joy for few. “Only companies of a large size and strength will be well received at the IPO,” said Kohli of ChrysCapital.
“Exits in mid-cap companies can take a while as some of these tend not to be very liquid,” said Devinjit Singh, managing director at Carlyle India Advisors. “Limited partners or investors need to see successful returns from India,” Singh added.
“There will be pressure on exits as 2006 investments will have now reached seven years. Given that the life of a typical fund is eight to nine years, these investments will have to be exited in some way, perhaps even at a loss,” said Utamsingh of KPMG.
Though the economic environment is improving, investors are still wary of the way ahead.
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