A new dawn for Indian PE

by Vivek Pandit

30th January 2017

After the aggressive fundraising of 2015, last year did not provide a wealth of investment opportunities. Activity took a major step back from 2015, with China, Korea and India volumes falling between a third and a half.

In India, investors call time on extensions, writing off 2-3 vintages and triggering a spate of secondary deals and exits at anything that returns cash. While rhetoric suggests the exit record is improving, $236B out of $475B from 2005-2011 remains stuck. Looking ahead, two silver linings: an improving IRR record for deals that found an exit and the large overhang of NPLs (eventually) offers investors an opportunity to acquire sizable distressed assets. Meanwhile government initiatives including GST implementation and demonetization attempt to usher in an era or greater compliance and scrub the black mark of recent years.

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This post is an edited extract from a longer post by Vivek Pandit on LinkedIn – https://www.linkedin.com/pulse/ten-asian-private-equity-headlines-2017-vivek-pandit?trk=hp-feed-article-title-publish

Image credit – Getty Images from same post