Private Equity Emerging Markets

Private Equity Investing in Emerging Markets Slows

Private equity activity in the emerging markets sector has declined during the recession and activity is expected to continue to slow down in 2009. However, managers are optimistic about the long-term potential in emerging markets.

A survey by Deloitte finds that 47% of Middle Eastern and North African private equity firms anticipate increased activity in the next 12 months. The report predicts that private equity investment in the emerging markets will pick up as valuations return to more reasonable levels, banks and lenders grant easier access to capital and the mid-market expands. Here are some of the key statistics in this report:

• Global private equity deals down from 1407 deals in Q3 07 to 655 in Q1 09

• Emerging market private equity deals down from 128 deals in Q307 to 51 in Q1 09

• 73% of respondents expect exit activity to decrease in MENA

• 83% expect entry multiples to decrease in the region

"Given the financial and regulatory turmoil surrounding the industry, it is reassuring to see that the emerging markets still view the long-term potential of the industry positively," said Chris Ward, global head of corporate finance and chief executive of Deloitte Corporate Finance in the Middle East. However, 40 percent of the participants expect a decline in private equity business due to the uncertain economy, valuation expectations and low liquidity. The global economic crisis and the lack of liquidity caused a steep drop in private equity activity.

The research indicated that local knowledge and relationship networks are considered vital. "Across the regions, the consensus of opinion amongst GPs is that proprietary deal flow is key. With deal flow being primarily focused on regional markets, and domestic private equity and other investors accounting for over half of all active players, the emphasis is upon possessing a deep-rooted knowledge and understanding of local markets," said Chris Ward.

But as credit markets are gradually opening up again and governments in the Middle East region pledged to pour billions of dollars in infrastructure and transport sector, private equity activity is seen increasing again. Source

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Tags: Private Equity Emerging Markets, Private Equity Emerging Markets investments, investing in emerging markets, emerging markets data, report on emerging markets buyouts

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Private Equity Contributions

List of Private Equity Campaign Contributions

The relationship between private equity firms and elected officials in charge of pension fund asset allocations has developed into a bit of controversy. The spotlight came with New York Attorney General Anthony Cuomo's state pension fund probe focusing on the use of placement agents and the fees paid to these intermediaries by private equity firms.

Now a newspaper has put together a list of private equity firms and their campaign contributions to politicians. In several cases the official seems to have direct influence on who receives investments from the state's pension fund. The list also includes hedge funds and other investment firms but is largely comprised of private equity firms all totaling in 515 contributions since 1996. To see the list of each contribution and who it was for and what firm donated the funds please visit here.



The high contributions to influential politicians seem to have been rewarded in some cases with large investments in private equity firm, although it's impossible to know whether the firm would have received the capital regardless of the contribution. Here are some of the more notable contributions:

• One-time presidential hopeful and now Governor of New Mexico, Bill Richardson, received $20,000 from the founder of Quadrangle Group in 2002 and 2006. Richardson is on the New Mexico State Investment Council and although he was absent for the vote, the investment council awarded Quadrangle with a $20 million investment in 2005. This investment returned about $1 million in management fees for Quadrangle.

• It's not that surprising that the Carlyle Group is on this list considering the firm is based in Washington, D.C. although it was an elected official in New York receiving the money. Carlyle's co-founder and managing director, David Rubenstein, gave $48,000 to Alan Hevesi's successful bid for New York state comptroller from 2002-2006. In turn, Carlyle manages almost $1.5 billion in state pension fund investments allocated since 2003, generating $38.6 million in management fees for the private equity firm.

• Another of the big private equity groups, Blackstone Group, gave to Governor Ed Rendell of Pennsylvania. Stephen Schwarzman, chairman of Blackstone Group, contributed $11,000 to the governor's campaigns in 2002 and 2006. Coincidentally (or not) Gov. Rendell appoints six of the Pennsylvania pension board's 11 members who decide what firms receive investments. From 1994-2007 Blackstone Group has received $2.8 billion from the state pension fund netting Blackstone $129 million in fees.

Source: New Mexico State Investment Council, New York State Office of the State Comptroller, Pennsylvania State Employees' Retirement System, USA TODAY research


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Venture Capital Future

The Future of Venture Capital

Considering the Future of Venture Capital

Venture capital has been struggling in the recession to secure funding from investors and risk-wary institutional investors are expected to further reduce asset allocation to the sector. In the first quarter of 2009 funding for start-ups plummeted about 50% from a year before to just $3.2 billion. While funding from VC's has increased somewhat in the second quarter, the number of deals remains about the same and fundraising is dismal, leading many to wonder about the future of venture capital.

I have been reading a lot of predictions of the future of venture capital and most--if not all--are pessimistic. The most optimistic pessimistic piece (forgive the contradiction) I have seen is from Union Square Ventures' Fred Wilson, he recently wrote:

"We need to get the venture capital business back to raising and investing less than $20bn per year on a sustainable basis. We are there now in terms of dollars being invested in startups. The last quarterly numbers were sub $4bn. And the amount of money coming into the VC business this year will be even less than what is going out.

The diet has begun. We are getting healthy again. I can see it in the market and I believe we will see it in the returns soon enough."

But even he admits that a trimming of the fat from the venture capital industry probably won't be a bad thing and even healthy for the bloated industry. In my own following of the industry I have come to a similar conclusion and tend to stray from the panicking VC's who are calling for a federal bailout. It's hard to imagine the industry expanding past the size it currently is and with many investors cutting investments in venture capital, many observers expect a major contraction.

A helpful explanation of the industry comes from Benchmark Capital's Bill Gurley. He estimates that the venture capital industry could be cut to half as investors roll back their capital allocations to alternative assets. His analysis focuses on the problem of institutional investors allocating too much of their portfolio to illiquid alternative assets. Institutional investment managers began increasing investments in alternative assets such as leveraged buyouts (LBO's), hedge funds and venture capital because these investments tend to produce a larger return with the higher risk.

The "Yale model" of investing heavily in alternative assets produced noticeable returns which was even more visible because institutional investors like pension funds and endowments usually disclose more information to the public. Other institutional investors felt a pressure to keep up with rival managers that were garnering such big gains on their investments so a trend started toward higher asset allocation to alternative assets.

This strategy was well-received during the buyout boom for private equity investments, recent high-earning years for hedge funds, before the real estate market went bust and in the late 90's til the dot-com crash and middle of this decade for venture capital. Even now, in some cases it is unclear how hard institutional investors will be hit with losses on investments because their money is tied in illiquid assets, many of which are not required to regularly report on a fund's performance. But allocation to alternative assets has seen immense growth largely spurred by institutional investors who have come to rely on alternative investments to boost portfolio returns.

When the economy tanked and liquid assets like bonds and stocks plummeted institutional investors were stuck with a sinking liquid portion of their portfolio and an uncertain illiquid portion. The managers wanted to stave off any further losses but because they are committed long-term to hedge funds, buyout and venture capital funds it is not as easy to exit. Coincidentally, the long-term aspect of these investments is a reason in favor of keeping reasonable allocation to alternative assets which may recover from recent losses. Furthermore, they were still required to meet capital commitments from their investments which led to a few unattractive options facing institutional investors (Via AboveTheCrowd):

1. Sell more of it’s liquid securities. This is problematic because it further compromises the target asset allocation.


2. Try to sell the LBO commitments on the secondary market. As you might suspect the secondary market is extremely depressed. Some have even suggested that due to the forward cash need on an early LBO fund, an institution might have to “pay” to get out of the position, and to encourage someone else take on the future cash commitment.


3. Default on the commitment. While this does have penalties in most cases, it would not be out of the realm of possibilities for this to occur if the investor has lost faith in the manager, and it is early in the fund (with more cash needs in the future).


4. Try to raise more capital. Not surprisingly, donations to foundations and universities are down dramatically due to the overall decline in the capital markets. This makes this strategy unlikely.

No matter what option the manager decides to go with, he or his Board are probably going to have a smaller appetite for risk after suffering such heavy losses. Thus, institutional investors and even other accredited investors are likely to cut back allocation to alternative assets in a big way. This is the primary reason that Bill Gurley and others suspect that the industry will be rolled back to a much smaller size.

Another note is just how bloated the industry has become with inexperienced and/or inept VC's sprouting up trying to raise capital in a tough economy, not to mention the number of proven VCs that have already admitted to problems raising capital and the ones that will undoubtedly struggle in the near future. But I don't think that any serious predictions see the industry dissolving completely, there are still a lot of talented venture capitalists and brilliant entrepreneurs that will thrive in a bad market or a good one. Even in the midst of a major economic collapse venture capitalists invested $3.7 billion for 612 deals in the Q2 of 2009 according to data from the NVCA. That's a 15% increase in dollars (although deals are still low) which is nothing to sneeze at in a time when many investors are still skeptical of even traditional investments.

Also see, Venture Capital Media
Learn more about Venture Capital Fund Raising
Read Buyout Funds and Venture Capital

Usual disclaimer applies: This does not constitute financial advice, see a licensed professional or legal consultant before following any recommendations from this website.

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FDIC Banks in Trouble

FDIC Approves Bank Plan

FDIC Approves Rules for Private Equity Buying Banks

The Federal Deposit Insurance Corporation has eased its restrictions on private equity firms buying banks but even with this concession many private equity firms are not happy with the deal.

The FDIC voted 4-1 to approve a 10% capital requirement for banks owned by private equity firms. This is a step back from the strict 15% tier 1 leverage ratio that was originally proposed. However private equity firms must meet a much higher ratio than the 5% required of "well capitalized" banks and still higher than the 8% tier 1 leverage ratio required of new banks.

The FDIC is looking to private equity firms to rescue the some of the 81 banks it has shut down this year and others that have fallen in the recession and are expected to in the next few months. If buyers like private equity firms do not purchase these banks the FDIC will have to cover the failed banks with its $13 billion insurance fund.

Although some private equity firms have already moved to buy stakes in banks, many seem to have been waiting on the FDIC's ruling to see if its a profitable investment. The new policy suggests avoiding the controversial capital ratio requirement by forming partnerships with current bank holding companies to bid for failed banks. Another contentious issue is the requirement that private equity buyers hold onto the banks for at least three years. This demand was kept and Chair Sheila Bair explained "We do want people who are interested in running banks." A chief concern according to the FDIC is that private equity firms with little to no experience in the banking industry will put the banks and taxpayers at risk.

The Private Equity Council is an advocacy group for several of the largest private equity firms and it has been a key negotiator with the FDIC. Douglas Lowenstein, President of the Private Equity Council, has already voiced its dissatisfaction with the ruling in a statement issued today:

“The revised FDIC guidelines represent an improvement over those originally proposed in July. But we continue to question the need to impose more onerous capital requirements on private equity firms that invest on behalf of retired police officers, firefighters, teachers, and other public employees.

“At a time when the nation’s banks are struggling to raise capital, it is counterproductive to impose measures that could deter investors who are ready, willing and able to provide that capital. Higher capital thresholds could make it less likely that private equity investors will bid on failed banks. At a minimum, it will reduce the value of any bids, increasing the resolution costs for the FDIC and creating greater likelihood that the agency will be forced to tap the $500 billion line of credit put up by American taxpayers. Given the well-documented track record of private equity firms in turning around troubled companies, it also makes little sense to deprive the banking system of needed expertise.

“That said, we appreciate the fact that the FDIC will review this guidance in six months. We hope that this review will yield a long-term policy that will equally benefit the customers and communities of failed banks, the FDIC, private investors, and the United States’ taxpayers.”

The Private Equity Council represents: Apax Partners; Apollo Global Management LLC; Bain Capital Partners; The Blackstone Group; The Carlyle Group; Hellman & Friedman LLC; Kohlberg Kravis Roberts & Co.; Madison Dearborn Partners; Permira; Providence Equity Partners; Silver Lake; and TPG Capital.

This is an important issue for private equity and the banking industry so I have been covering this in some detail. Here are some of the articles and resources on the FDIC's regulation of private equity firms investing in banks:

• FDIC Proposes Strict Guidelines for Private Equity
• Tom Brown on Private Equity Banking
• Wilbur Ross Criticizing the FDIC Plan
• All Stick No Carrot for Private Equity in Banks
• Private Equity Banks
  

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Private Equity Event

Breakfast with Co-Founder of Blackstone Group | NYC

On September 17th, Argyle Executive Forum will host a breakfast with the Co-Founder of the Blackstone Group, Peter G. Peterson. The event will take place in New York City from 8:00am – 10:00am on Thursday, Sept 17th, 2009.

This breakfast is by invitation only but anyone who did not receive an invitation can contact the Argyle Forum to see about reserving a ticket. The ticket price is normally $275 but if you e-mail aengel@argyleforum.com you may be able to get a ticket for $199 instead. These discounted tickets are limited so contact the Argyle Forum through aengel@argyleforum.com now to reserve your seat. I will be in the city on the 17th and plan to attend the event, so come have breakfast and listen to Mr. Peterson speak.

Peter G. Peterson is Chairman Emeritus and Co-Founder of The Blackstone Group, a private investment banking firm he co-founded in 1985. He has served on the Council of Foreign Relations and is the founding Chairman of the Peterson Institute for International Economics (Washington, D.C.) and founding President of The Concord Coalition. Mr. Peterson was the Co-Chair of The Conference Board Commission on Public Trust and Private Enterprise (Co-Chaired by John Snow, formerly Secretary of the Treasury). He was also Chairman of the Federal Reserve Bank of New York from 2000 to 2004.

For more information contact aengel@argyleforum.com


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India Family Offices

Family Offices Gain Popularity with India's HNIs

The number of high net worth individuals (HNIs) has grown impressively leading to a similar rise in Multi-Family Offices. A family office is a unique capital source for private equity and venture capital funds so its important to track the development of this industry.

India had the second-highest increase in high net worth individuals in 2006 and 2008. India now has an estimated 84,000 families with net assets of at least $1 million (roughly Rs 5 crore). Family offices have emerged as a helpful way to manage that wealth.

What makes MFOs popular is that they earn money on the fee clients pay and ability to work with other financial services companies. This is absent in wealth management companies that earn income from selling in-house products.

“Ultra-rich families are increasingly thinking that product-driven wealth management companies do not serve purpose,” said Richa Karpe, director, investments at Altamount Capital Management, a multi-family office firm.

"Family office is at the top of the pyramid in wealth management space. It is for people who have liquid financial assets over Rs 50 crore,” said Rajesh Saluja, CEO, ASK Wealth Advisors. For any amount below that, the cost of managing the assets will shoot up. Most of the companies agree with this. Client Associate is the only exception that takes families on board with investible surplus of Rs 10 crore.

Read more...

If you're wondering what a family office is, please see this educational video definition of a family office.

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Private Equity Blogger Poll

Please Give Feedback With the New Poll

PrivateEquityBlogger.com has been updated daily for at least two years now and I want to continue to deliver the content that you want. I receive many e-mails asking for coverage of specific sections or firms in the industry, and I try to address those as best as possible. However, in order to get a better sense of what you would like to learn more about, please use the poll on the top right-hand corner of this blog. I've narrowed it down to my most popular types of articles so you can tell me exactly what you would like to see more of.

It's simply answering one question, you don't have to leave the page you are on and it requires no information about you. E-mail subscribers can simply visit PrivateEquityBlogger.com and see the survey on the right. Thank you for helping make this site into a better resource on private equity.

If you have any direct questions or comments please direct them to Theo@PEBlogger.com and I will try to get back to you as soon as I can.

-Theo O'Brien



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Pre MBA Jobs

Pre MBA Job Listings | Job Opportunities

I receive many e-mails from Pre-MBA students and professionals looking for job experience in private equity to bolster their resume and get them into the industry. I stumbled upon this particular job listing today and thought it may be of interest:

Our client is a leading Private Equity Fund, investing in growing and profitable businesses across numerous industries where technology provides a key component for growth.​ Their business model encourages Associates to participate in all areas of the firm – deal sourcing through diligence and execution, including investing, and then working with the management teams of the portfolio companies.​ With offices around the world, we have been engaged by the individual responsible for opening a new office in India, scheduled to launch in the second half of 2010 or the first half of 2011.​ This search will be completed by the 4th quarter of 2009, with a first quarter 2010 start date – or summer 2010 if that is more appropriate for the candidate.​

This is a three year and out opportunity for someone who is desirous of working within a highly regarded fund prior to attending B-School.​ The candidate will initially live in London for training until the build out of the India office – and then relocate to India for the duration of the assignment.​ Bottom-line, we’re looking for someone who:

• Possesses dynamite credentials – including outstanding grades from a top school – with a degree in finance, technology or engineering
• Has terrific test scores and a record of achievement in and out of school and work
• Is either a recent graduate or has a maximum of two years experience as an Investment Banking Analyst at a Bulge Bracket Bank or as a Business Analyst within a Top Tier Global consulting firm
• Offers superior financial modeling and diligence skills and has a passion for detail
• Considers himself or herself and extrovert, has demonstrated a drive to achieve, and who enjoys the challenge of “the hunt”
• Is highly competitive and has likely participated in sports

We are industry agnostic in terms of candidate experience, but we would preferably encourage individuals who have grown up in India and who attended school in the US, Europe or India to apply.​ We would expect the individual to be conversant in Hindi, but that is not required.​ An outstanding compensation package is offered the candidate selected – equivalent to $90,000 to $100,000 plus bonus….​.​of course depending on background and experience.​

If we have described your background, experience, and interests - we should talk immediately! For additional information and a confidential interview, please send your resume in a Word doc to mccall@​harrismccall.​com with 621 PE London & India in the subject line

I am a tad suspicious of the high salary and bonus to someone pre-MBA, but it's worth noting.


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PAI Private Equity

PAI Management Resigns

2 Senior Executives Leave France's Largest PE Firm

PAI Partners will lose two of its most experienced executives after significant losses on some of the firm's investments. The sudden loss of Dominique Megret forces PAI to renegotiate its latest €5.4bn fund with investors. Megret has been a part of PAI Partners since 1974, taking the helm three years ago. He passed his role as CEO to Lionel Zinsou who has only been with the firm for a year. Bertrand Meunier, another veteran of 27 years at the firm, has also announced his resignation from PAI Partners.

Michel Paris, currently head of capital goods and services, will replace Mégret as chairman of PAI’s investment committee when Mégret takes his early retirement next year.

Mégret’s departure will trigger a “key man” clause in the €5.4bn fund, which could in extreme cases lead to the winding up of a fund. Reports have stated, however, that PAI is more likely to make some concessions on the size and terms of the fund in order to keep its investors on board.

PAI is enlarging its executive committee to include more non-French partners. Ricardo de Serdio, head of PAI’s Spanish office, and Raffaele Vitale, head of Italy, are two who are coming aboard. Source

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Warren Buffett Private Equity

Warren Buffett's Dislike for Private Equity

Warren Buffett is widely recognized for his ability to invest and amass huge piles of wealth--despite the recession he is the #2 wealthiest person in the world. Mr. Buffet has a very public distaste for the private equity industry. This may surprise those of you familiar with Mr. Buffett's holdings considering he has a stake in Goldman Sachs which has a private equity division, Goldman Sachs Capital Partners. Apparently, his $5 billion investment in Goldman Sachs has not changed his perception of the industry.

In a letter to shareholders he gave a lengthy criticism of private equity. His primary complaint is that leveraged buyout funds buy and sell companies with a sole focus on profiting from the exit. Comparing the LBO approach to Berkshire Hathaway's, he says "We have a decided advantage, therefore, when we encounter sellers who truly care about the future of their businesses." While Berkshire may take a different approach, buyout firms do have a stake in the success of their portfolio companies and if the companies tank following the IPO or sale that reflects poorly on the buyout firm.

Mr. Buffett derides the use of leverage by private equity firms and explains that the LBO model is still in use despite a shift toward calling themselves private equity firms more than "leveraged buyout operators."

Some years back our competitors were known as “leveraged-buyout operators.” But LBO became a bad name. So in Orwellian fashion, the buyout firms decided to change their moniker. What they did not change, though, were the essential ingredients of their previous operations, including their cherished fee structures and love of leverage.

Their new label became “private equity,” a name that turns the facts upside-down: A purchase of a business by these firms almost invariably results in dramatic reductions in the equity portion of the acquiree’s capital structure compared to that previously existing. A number of these acquirees, purchased only two to three years ago, are now in mortal danger because of the debt piled on them by their private-equity buyers. Much of the bank debt is selling below 70¢ on the dollar, and the public debt has taken a far greater beating. The private-equity firms, it should be noted, are not rushing in to inject the equity their wards now desperately need. Instead, they’re keeping their remaining funds very private.

It seems to me that his essential complaint is with the fundamental idea of a leveraged buyout and it is a bit unreasonable to expect that a historically successful business model would be abandoned over some adverse publicity. Although his thoughts are apparently resonating with private equity firms who are said to be turning away from leverage toward more equity. He seems to see a major disconnect between the private equity backer and the portfolio company, as if the private equity firm is saving itself by refusing to inject equity into their investments but what does it benefit the private equity firm?

I wonder what his motivation for criticizing private equity firms. In his page-long critique he contrasts buyout firms with his own firm, Berkshire Hathaway. Not surprisingly, Berkshire Hathaway comes out sounding like a much more responsible and business-friendly option and private equity firms are depicted as careless profit- extractors.

I always listen when Warren Buffet talks because his record for predicting the market and improving businesses is unparalleled. However, his dislike for private equity continues to baffle me. If you'd like to read his annual letter to investors, follow this link.


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India Private Equity Firms

List of Private Equity Firms in India

India is regarded as one of the most promising emerging markets for private equity.  Private equity firms have recognized the rapid development in this country and the huge potential for private equity investments there.  The following is a list of private equity firms and funds located or investing in India.  To obtain the contact details for more than 1,000 private equity firms located in the United States and abro follow this link.

List of Private Equity Firms in India

2i Capital (India) Private Ltd - Bangalore

3i India - New Delhi

AIG INV Corporation (Asia) Ltd - Mumbai

APIDC-Venture Capital Ltd Hyderabad

Aavishkaar India Micro Venture Capital Fund

Aavishkaar India Micro Venture Capital Fund - Mumbai

Accel Partners & Co Inc - Bangalore

Acer Technology Ventures Asia Pacific - Bangalore

Alliance DLJ Private Equity Fund - Bangalore

Alliance Venture Capital Advisors Ltd Mumbai

Anandrathi Real Estate Fund

Apax Partners India Advisers Pvt Ltd Mumbai

Avendus Advisors Pvt. Ltd.

Avigo Capital Partners Delhi

BTS Investment Advisors Private Ltd Mumbai

BTS Investment Advisors Pvt. Ltd.

Bank America Equity Partners (India) Mumbai

Baring Private Equity Partners (India) Ltd New Delhi

Baring Private Equity Partners (India) Pvt Ltd Gurgaon

Baring Private Equity Partners India Ltd.

CDC Capital Partners [South Asia] Delhi

Canbank Venture Capital Fund Limited

Canbank Venture Capital Fund Ltd Bangalore

ChrysCapital

ChrysCapital Investment Advisors New Delhi

Chrysalis Capital Mumbai

Cipher Capital Advisors Pvt Ltd Mumbai

Citi Alternative Investments

Citibank Private Equity Ltd New Delhi

Clearstone Venture Advisors Pvt Ltd Mumbai

Connect Capital

Creditcapital Venture Fund (India) Ltd New Delhi

DE Shaw India Advisory Services Private Ltd Mumbai

DE Shaw India Software Private Ltd Hyderabad

DHFL Venture Capital Fund India Pvt Mumbai

Draper Fisher Jurvetson Bangalore

Duke Equity Partners Maharastra

Evolvence Advisory Services Pvt. Ltd.

Fidelity India Capital Partners Mumbai

Frontline Strategy

GE Capital Services India Ltd Gurgoan

GVFL Ltd.

GVFL Ltd Ahmedabad

GW Capital Pvt. Ltd.

Gaja Capital Partners

Gaja Capital Partners Mumbai

Global Internet Ventures LLC (GIV) Bangalore

Grass Valley Group Bangalore

Gujarat Venture Finance Ltd Ahmedabad

HBSC Private Equity Management Mauritius Ltd New Delhi

HSBC Private Equity Advisors (India) Private Ltd Mumbai

HSBC Private Equity Management Mauritius Ltd

Hansuttam Finance Ltd New Delhi

ICF Ventures Private Ltd Bangalore

ICICI Venture Funds Management

ICICI Venture Funds Management Co Ltd Bangalore

ICOS Capital

IDFC Private Equity

IDG Ventures India Bangalore

IFB Venture Capital Finance Ltd Calcutta

IFCI Venture Capital Funds Ltd

IFCI Venture Capital Funds Ltd (IVCF) New Delhi

IL & FS Investment Managers Ltd Mumbai

IL & FS Venture Corp Ltd New Delhi

IL&FS Venture Corporation Ltd.

India Value Fund

India Value Fund Bangalore

India Value Fund Mumbai

Indian Angel Network

Indian Direct Equity Advisors

Indian Direct Equity Advisors Pvt Ltd Mumbai

Indocean Chase Capital Advisors Mumbai

Indus Venture Management Ltd Mumbai

Industrial Venture Capital Ltd Chennai

Infinity Technology Investments Pvt Ltd - Bangalore

Infinity Technology Investments Pvt Ltd - Mumbai

Infinity Technology Investments Pvt Ltd - New Delhi

Infinity Venture Fund

Intel India Bangalore

Intel India Mumbai

Jina Ventures

JumpStartUp

JumpStartUp Fund Advisors Pvt Ltd Bangalore

Karnataka Asset Management Co Pvt Ltd Bangalore

Karnataka Asset Management Company Pvt.Ltd.

Karnataka Information Technology Venture Capital Fund Bangalore

Kerala Venture Capital Fund (P) Ltd.

Kerala Venture Capital Fund Pvt Ltd Kochi

Kotak Private Equity Group

Lightspeed Venture Partners Bangalore

Lightspeed Venture Partners New Delhi

Marigold Capital Services Ltd Mumbai

Matrix India Asset Advisors Pvt Ltd Mumbai

Mefcom Capital Markets Ltd.

NIIT Venture New Delhi

Navis Capital (India) Private Ltd Mumbai

New Path Ventures

Newbridge Financial Advisors Put Ltd Mumbai

Nokia Growth Partners Gurgaon

Norwest Venture Partners Bengaluru

Norwest Venture Partners Mumbai

NovaStar Capital Bangalore

Och-Ziff India Private Ltd Mumbai

OrbiMed Advisors LLC Mumbai

PSi Inc.

Paracor Capital Advisors (P) Ltd Gurgaon

Passion Fund

Pathfinder Investment Co Ltd Pune

Pradeshiya Industrial and Investment Corporation of UP Ltd

Private Equity Partners SGR SpA Mumbai

Providence Equity Partners Inc New Delhi

Punjab Venture Capital Ltd.

Punjab Venture Capital Ltd Chandigarh

Rabo India Finance

Rajasthan Venture Capital Fund (RVCF)

Rajasthan Venture Capital Fund Jaipur

Redclays Capital - Private Equity and Venture Capital

Redclays Capital Pvt Ltd Bangalore

Reliance Technology Ventures Ltd Mumbai

Risk Capital & Technology Finance Corporation Ltd (RCTC) - New Delhi

SAIF Partners

SAIF Partners Gurgaon

SICOM Capital Management Ltd Pune

SIDBI Venture Capital Limited (SVCL)

SIDBI Venture Capital Ltd - Mumbai

Sage Modern Capital - New Delhi

Samara Capital

Scroder Capital Partners (Asia) Ltd - Mumbai

Sicom Venture

Siemens Venture Capital

Siguler Guff & Co LLC - Mumbai

State Street Global Advisors India

Sterling Technology & Venture Corp - Madras

Sun F&C Asset Management (I) Pvt Ltd - Mumbai

TA Associates Inc - Mumbai

TDA Capital Partners Inc (India Liaison Office) - Mumbai

TPG

TVS Venture Fund Private Ltd - Chennai

Tano Capital LLC - Mumbai

Tata Investment Corp Ltd - Mumbai

Techcap India

Templeton India Private Equity Fund - Mumbai

Texas Pacific Group - Mumbai

The Carlyle Group Dubai

The View Group

Tishman Speyer

UTI Ventures

UTI Ventures - Bangalore

Unit Trust of India - Technology Venture Unit Scheme - Bangalore

Unit Trust of India - Technology Venture Unit Scheme - Mumbai

Usha Martin Ventures Ltd - Calcutta

Uttar Pradesh Venture Capital Fund - Mumbai

VIEW Advisors Private Ltd - Mumbai

Ventureast

Ventureast-APIDC Hyderabad

Vickers Ballas Securities India Pvt Ltd - New Delhi

Walden - Nikko India Management Co Ltd - Bangalore

Walden - Nikko India Management Co Ltd - Mumbai

Walden International India - Mumbai

Walden Nikko India Management Co. Ltd.

Warburg Pincus India Pvt. Ltd.

Warburg Pincus India Pvt Ltd - Mumbai

West Bengal Venture Capital Fund Trust for IT Telecom & Electronics - Calcutta

West Bridge Capital Partners Advisors - Mumbai

Zephyr Management Africa (Pty) Ltd - Bangalore

esdevNET Inc

This Private Equity Firm Directory contains the private equity fund firm name, primary contact name, physical location, assets under management, phone number, fax, and email address as well.  Click here to learn more about this directory of private equity firms.  If you would like to read more about this Private Equity Firm Directory, see this article.

I speak with many young professionals and students who have moved to the US from India or currently live in India and would like to enter the private equity industry.  Our firm currently offers a Private Equity Training program that can be completed from anywhere in the world 100% online.  If you would like to read more about the Certified Private Equity Professional program follow this link.

1. Private Equity Tracker Tool
2. Private Equity Career Guide
3. Private Equity Training
4. Private Equity Directory - List of Private Equity Firms

Tags: india private equity firms, private equity firms in India, Indian private equity firms, india private equity, private equity funds in India, private equity india, list of India private equity firms, list of private equity firms in India, India private equity firm directory, database

Link to This Resource: India Private Equity Firms

http://privateequityblogger.com/2009/08/india-private-equity-firms.html

Leon Black Apollo

Back in Black: Apollo Management Returns

Leon Black is back. Black, seen here in an unflattering depiction from the Post, founded Apollo Management LP nearly two decades ago. In recent years, the buyout firm has gone through some hard times. After a string of setbacks in the recession, Black's Apollo Management is becoming a major player in the distressed investing market.

The firm was hit hard by the recession, most notably the lost of its 99.59% equity stake in Linens Holding Co. (parent of Linens 'n Things.) Apollo purchased the company for $1.3 billion in 2006 but Black failed to save the business from filing for Chapter 11 in 2008. In another deal-gone-bad, Apollo had to go to court against a chemical company it had attempted to purchase. Apollo tried to back out of the $6.5 billion deal to buy Huntsman. The court ruled against Apollo and its portfolio firm saying Hexion intentionally breached the merger agreement; Apollo paid $1 billion in a settlement with Huntsman.

Now, Apollo Management is becoming very active purchasing junior distressed debt. Before moving into private equity, Leon Black was an executive at the investment bank Drexel Burnham Lambert. There he profited by repossessing companies that had fallen into bankruptcy. It seems he has "returned to his roots" by buying up debt of struggling companies trying to stay afloat in the recession.

• In a debt-for-equity swap, Apollo Global Management became one of the primary shareholders of Monier Group GmbH, a German roofing business.
  
• It looks like this model will be repeated with decorative laminate maker Panolam Industries International. Panolam recently said it had worked out a preliminary agreement with the holders of senior subordinated notes. The agreement is led by Apollo and would cut $151 million in debt.
• Apollo is also rumored to be buying up debt of Fontainebleau Las Vegas Holdings but a larger stake is still in the works.
• Apollo Management VI LP has proposed investing $193 million into plastic maker Pliant in exchange for a common equity stake in the company. In the restructuring deal it has successfully pushed through, Apollo or portfolio company Berry Plastics would gain a 55.7% stake in Pliant.
  

The purchasing of companies with huge debt obligations has earned corporate raiders like Leon Black a great deal of criticism. But the vultures of Apollo have proven the strategy time-and-again so even having his head placed on a vulture's body won't likely stop Leon Black. But the question has been placed many times, is Black taking advantage or simply seizing a good opportunity?

See our private equity tracker profile for Apollo Management here.

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Tags: Leon Black, Leon D. Black, Leon Black Private Equity, Apollo Management, Global Apollo Management, Apollo Management VI LP, Vultures, Investors, Private equity managers

Link to This Resource: Leon Black Apollo

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Working in Private Equity

Work in Private Equity

Do You Really Want to Work in Private Equity

I receive e-mails every week from eager young professionals looking for an entry point to the private equity industry. A familiar phrase is "I want to work in private equity" but I would guess that few really consider if they can commit to a career in private equity. So, I'm asking potential private equity professionals, do you really want to work in private equity?

There are an infinite number of careers you can pursue, but if you are reading this blog we can assume that you have settled on finance. Committing yourself to working in the private equity industry is a necessary first step toward achieving that goal. If you are simply trying for any business or finance job that you can find, you are at a disadvantage to those who have a
single goal of working at a buyout firm.

If you do not commit exclusively to private equity you have to spread yourself and your resources over several industries which makes it significantly more difficult to meet with people connected in each industry. While you are are spreading yourself too thin across hedge funds, private equity, mutual funds and other areas; a committed competitor is networking with private equity professionals, joining private equity associations, interviewing at with managers and partners and taking other concrete steps toward a private equity career.

If you really want to work for a private equity firm, it will show in your self-discipline, networking, knowledge of the industry, passion and, ultimately, your actions. You can change
your mind later, but if you want to try to work in this industry - go all in and learn as much as
you can. Make the decision to change focus, commit to it for three to five years and see what
comes of it.

A common question during an interview with a private equity firm or recruiter is “Why do
you want to work in private equity?” If you can offer an honest answer that displays your dedication and interest in the industry, then you are on your way.


If you'd like to learn more about the industry please see our Career Guide which has helpful resources for advancing your private equity career. 

Looking for a job in private equity or would you like to advertise an open position on this website? See our Alternative Investment Jobs.



Usual disclaimer: This does not constitute financial advice, see a licensed professional or legal consultant before following any recommendations from this website.

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Tags: Alternative Investment Job Opportunities, Investment Jobs, Private Equity Careers, Private Equity Associates, Private Equity jobs, job listings, employment, buyout job

Link to This Resource: Working in Private Equity

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Private Equity Twitter

The Meteoric Rise of the Internet Startup Twitter

If you're reading this post online, you've certainly heard of Twitter--if you're not a regular user already. Even those who wouldn't be considered "tech-savvy" have probably at least heard the name of the internet startup that emerged as one of the most popular websites on the internet.

Twitter provides users with a platform for short messages and updates and it is regularly featured on the cable news networks. In the height of the disputed Iranian elections, Twitter was a common means of communicating the situation to news outlets, friends and family. Why is this relevant to private equity? Twitter is a private company and has raised much of its capital from venture capitalists. In February of this year, Twitter closed its third fundraising round after netting at least $35 million from Benchmark and IVP.

Twitter has raised around $55 million primarily from venture capitalists since it was founded in 2006. In its first round of fundraising it collected $5 million, then $15 million and closed its Series C round with $35 million. A consistent investor through all three rounds has been Union Square Ventures (A VC Fred Wilson's fund). Biz Stone, the co-founder of Twitter, implied that the last round was not entirely necessary, "We weren't actively seeking more funding because significant capital from last year's partnership with [Boston-based VC Spark Capital] is still in the bank. Nevertheless, our strong growth attracted interest and we decided to accept a unique opportunity to make Twitter even stronger with a very attractive offer."

One problem raised by investors is how Twitter can be monetized to generate profits. The website is free-to-use and because it only allows a 140-character message, it's hard to imagine including an advertisement. Stone seems confident that he will be able to make money off the website's huge user-base. He has written, "We are now positioned extremely well to support the accelerating growth of our service, further enable the robust ecosystem sprouting up around Twitter, and yes, to begin building revenue-generating products." It's safe to assume Twitter wouldn't be able to keep the number of venture capitalists investors it has if there wasn't a monetary incentive, but a clear plan has yet to be revealed.

If you're a Twitter user you can follow me here: http://twitter.com/pebloggerdotcom


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Tags: Twitter, networking, twitter venture capital, twitter fundraising, revenue, profits, biz stone, twitter finance, union square ventures, venture capital private equity, twitter news

Link to This Resource: Private Equity Twitter

http://privateequityblogger.com/2009/08/private-equity-twitter.html

Women in Private Equity

In Europe, 10% of Private Equity Pro's are Women

A recent survey found that there are very few women working in European private equity. Preqin surveyed 747 Europe-based professionals at the top ten largest private equity firms in Europe and found only 74 female employees. Interestingly, the private equity industry seems to have a less equal ratio than other financial services sector, where women make up about half of the employees.

Apparently, the private equity industry would like to adjust the disproportionate number, as 80% of respondents said women were underrepresented in senior positions. The women who responded to the survey split in their opinion on whether gender had affected their career negatively or not at all.

Carol Kennedy, a senior partner at Pantheon Ventures, which had the highest proportion of female investment employees, commented, "If you've got people seen to be doing well in other firms or within a firm, you are more likely to recruit senior professionals." One possible explanation for the discrepency comes from Shani Zindel, head of the London buyout team at Isis Equity Partners. Zindel said that most people entered private equity in their late 20s or early 30s after gaining experience elsewhere, which often clashed with women who wanted to start families. (Preqin)

See a summary of Women in the Venture Capital Industry

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Tags: Women Private Equity, Europe Women Private Equity, Private Equity Female, Gender, Buyouts women, Gender inequality in private equity, preqin research

Link to This Resource: Women In Private Equity

http://privateequityblogger.com/2009/08/women-in-private-equity.html

Reader's Digest Bankruptcy

Private Company Reader's Digest Files for Bankruptcy

Since 2005, Reader's Digest has struggled to overcome heavy losses which finally led the company to file for Chapter 11 bankruptcy this week. Reader's Digest went private in 2007 under private equity backing from Ripplewood Holdings in a transaction valued at $2.8 billion. The firm aims to restructure its debt through the bankruptcy process but plans to continue operations. Through its Chapter 11 filing, Reader's Digest can trade senior debt for equity (a total of $1.6 billion) and hopefully regain its financial footing. Here is a news video that gives more background to the possible errors made by Ripplewood Holdings when purchasing Reader's Digest, most notably overpaying in the buyout boom days.





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Tags: Readers Digest Bankruptcy, Readers Digest Bankruptcy Filing, Readers Digest Chapter 11, Readers Digest Ripplewood Holdings, Ripplewood private equity, buyouts

Link to This Resource: Readers Digest Bankruptcy

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Blackstone Group China

Blackstone Group Opens Private Equity Fund in China

The Blackstone Group launched a new $732 million private equity fund in Shanghai, a bold step toward buyout firms investing in China. Earlier this year, China signaled its intention to foster ties with private equity firms when China's state pension fund announced that it was looking to invest in 3-5 private equity funds in 2009.

The Blackstone Group will establish the Blackstone Zhonghua Development Investment Fund with the newly formed government of Pudong New Area. Blackstone will become the first global private equity firm to obtain investment from a top-tier city government in China. Experts believe that China is looking to open itself up to private equity firms in order to establish itself as a major financial player.

The fund will target investments in Shanghai and neighboring areas. China and Blackstone didn’t disclose the structure of the fund. Blackstone spokesman Peter Rose declined to comment beyond the statement.

The agreement signifies China’s endorsement of private equity to bolster corporate governance and profit, said Vincent Chan, co-founder of China-focused fund Spring Capital Asia Ltd. TPG, Carlyle Group and KKR & Co. haven’t established domestic funds.

“The Blackstone deal represents China’s willingness to use private equity to shake up the economy,” Chan said. “China’s future economy will be driven by its private enterprises.” Many first-time chief executive officers “will need help on matters from boosting corporate governance to acquisitions.”

Shanghai imposes tax rates of up to 35 percent on private- equity and venture-capital firms under limited partnership structures, and charges 20 percent on capital gains earned by non-executive partners, according to rules announced in August last year. In Hong Kong, capital gains are exempt from taxation and the corporate tax rate was cut to 16.5 percent.

Read whole story

To read about private equity investing in China, see Private Equity in China.
Also read about China's pension fund and private equity.

See our Private Equity Firm Tracker profile for the Blackstone Group.
Stephen Schwarzman's $702.4 million in compensation has garnered a lot of interest lately, read the article here.

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Tags: Private equity china, blackstone group china, blackstone group china fund, BX, blackstone group new fund, Blackstone Zhonghua Development Investment Fund, Blackstone group Shanghai

Link to This Resource: Blackstone Group China

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Private Equity Banking

Tom Brown on Private Equity Firms Buying Banks

Thomas K. Brown is a well-known figure in the banking industry who operates Bank Stocks.com and manages a hedge fund investing exclusively in financial services. He has a tough criticism of FDIC Chairman Sheila Bair and her position on private equity firms investing in banks. In an Op-ed on Seeking Alpha Brown asks: "What is it with Sheila Bair and private equity investors? Did she have a bad date with one in college? Somebody seems to have plunked the idea into her head that private equity investors are somehow dumber, or less competent, or less ethical than other bank investors." Here is a video of Thomas Brown talking about his piece and explaining his frustration with Bair, e-mail subscribers can watch the video here.



As I have covered in this blog, the FDIC and private equity firms have battled over the banking crisis. Originally the FDIC was requiring private equity firms to keep a Tier 1 capital ratio of 15% which is about twice that required of other institutions. Bair also suggested that private equity funds for at least 3 years (not an unreasonable condition, considering the typically long-term commitment by PE funds.) She also proposed that banks held by a single private equity firm must cross-guarantee each others' liabilities. Brown is at a loss for why the Chair of the FDIC is stalling this process:

...why has the Dragon Lady of the FDIC, Sheila Bair, thrown up one roadblock after another to prevent private equity investors from supplying the capital to the banking industry that the government itself insists the industry so urgently needs?

Sheila Bair has backed off some by reducing the capital ratio to 10%, but that is still a stricter requirement than other institutions putting private equity firms at a disadvantage to other buyers. Brown wonders, "What is it with Sheila Bair and private equity investors? Did she have a bad date with one in college? Somebody seems to have plunked the idea into her head that private equity investors are somehow dumber, or less competent, or less ethical than other bank investors." He continues his criticism saying her tenure has been characterized by repeated poor decisions and he looks forward to her departure from the FDIC.

I find it a bit curious that Thomas Brown has used such strong language and been so critical of Bair and many other voices in private equity have been silent publicly. One reason is probably because Brown does not have a vested interest in the FDIC rules on private equity whereas private equity firms are trying to work out a favorable deal and public attacks like this will not help their situation.

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Tags: Private equity banks, private equity banking, private equity regulation, private equity rules, private equity FDIC, private equity banks investing, private equity investing in banks

Link to This Resource: Private Equity Banking

http://privateequityblogger.com/2009/08/private-equity-banking.html