After a 2-year lull, PE cos in a tizzy as top managers go job hopping

After a lull of two years, private equity (PE) companies have witnessed a rejig of top management jobs in the country last year.

The PE segment in India saw about 20-25 moves at senior levels such as directors, managing directors and partners during the last one year. Among the recent ones is Ernst & Young?s infrastructure practice head Jayesh Desai, who has joined Enam Group?s PE fund. Experts attribute the hectic activity to the mounting pressure for returns, differences among partners, deteriorating performance of existing funds and the entrance of the new funds to India.

Anjali Bansal, managing partner of Spencer Stuart India, one of the world?s leading executive search and leadership consulting firms, said, ?As consolidation takes place in the Indian PE space, there is movement of talent. Some already established funds are pulling back even as new funds are being set up. In some cases, where the funds are not being pulled back completely, the size of teams is being reduced or refocused. At the same time, the expansion of India-focused funds brings new opportunities for talent.?

ICICI Venture is one among the major firms which faced a jolt due to an exodus that happened since the exit of Renuka Ramnath, its former MD in April last year. Last week, Rajiv Shukla, a director of investments at ICICI Venture quit the firm after his two-year tenure, to join Morgan Stanley Investment Management as managing director. Last month, Ramu Kennedy, principal at ICICI Venture, also quit the firm to join another PE firm. During the last one year, ICICI Venture saw the exit of Sudhir Variyar, a senior director, Shweta Jalan, director, Pradeep Varshney, a senior director in the real estate team and Shailesh Pathak, a former IAS officer and senior director. Shweta Jalan joined as director, Advent Indian PE advisors Pvt Ltd while Sudhir Variyar was absorbed by Multiples Alternate Asset Management, the PE firm started by Renuka Ramnath.

Sunit Mehra, managing partner& founder, Hunt Partners, a firm focused on PE & VC recruitments, said, ?If an organisation doesn?t perform well, people will look for better opportunities. Apart from that, the inability to get along with the ideas of fellow partners also compels one to quit an organisation.?

Last year, Subbu Subramanian, a partner with Baring Private Equity Partners India, had quit the firm over professional differences with the firm’s managing partner Rahul Bhasin after 12 years of association with him. Following him, Akhil Awasthi, a partner with Baring, had quit to join Tata Capital, as the managing partner of its mid-market private equity fund. In July last year, Shailendra Bhandari, the head of Tata Capital’s PE business, had quit less than a year after he joined the firm. Mahesh Chhabria, partner, 3i India also decided to move Actis PE this month.