Carried Interest 2011

Carried Interest Tax Hike Passes House, Not Enacted til 2011

Hedge fund and private equity managers will have to pay an increase on their taxes, but not until 2011.  The U.S. House of Representatives voted to eliminate the tax benefit for carried interest and if the Senate approves the bill, hedge funds and private equity managers will feel a significant cut in their earnings next year.

Under current tax code, carried interest is treated as capital gain and taxed at only 15% but that would be changed to tax carried interest as ordinary income which can be up to 35%.   The measure passed in the House by a vote of 215-204.

The House passed a bill on Friday that would end a tax break for executives of investment funds, leaving hedge funds, private equity firms and venture capitalists scrambling to ease the effects of the bill before it is taken up by the Senate next month.

The measure was part of a broader tax bill, passed by a vote of 215 to 204, that would extend benefits for unemployed people. It seeks to change the tax treatment of “carried interest,” which is the portion of a fund’s investment gains taken by fund managers as compensation.

The plan approved by the House, which overcame strong lobbying pressure from Wall Street, amounted to a compromise that would tax 75 percent of carried interest as ordinary income and 25 percent as capital gains. It is expected to raise more than $17 billion in tax revenue over the next decade.   Source

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Tags: Carried Interest 2011, Carried interest tax, tax income, hedge funds, private equity, private equity managers, taxation, US tax code, House, Senate

Link to This Resource: Carried Interest 2011

http://privateequityblogger.com/2010/05/carried-interest-2011.html

Private Equity Cleantech Report

2010 Preqin Report on Private Equity Investing in Cleantech

Quick post before I leave for Seattle, I am finally reading this Preqin report on Private Equity Cleantech.  Cleantech is already a rapidly growing sector and will likely continue as more solutions are developed for addressing climate change and man's impact on the environment.  This is a good overview of private equity investing in cleantech.  I see this as a good area for specialization if you are trying to boost your private equity resume as I expect many more PE firms will specialize in cleantech.  Here is the link again to the report.  Enjoy your Memorial Day weekend!

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Tags: private equity cleantech, cleantech private equity, buyouts cleantech, clean technology, cleantech private equity firms

Link to This Resource: Private Equity Cleantech Report

http://privateequityblogger.com/2010/05/private-equity-cleantech-report.html

Private Equity Resumes

Suggested Items For Private Equity Resumes

A good resume is key to landing a job in private equity.  I have previously written a couple pieces on creating a solid private equity resume, see Private Equity Resume Tip and Private Equity Resume.  Here is a list of suggested items that should be on a private equity resume, if you do not have all of these factors you will not definitely be excluded from consideration but your chances will go up with each qualification:

• Valuation, quantitative, due diligence, management experience and abilities
• CFA Designation or similar relevant designation (CPEP)
• Education - Ivy league, MBA, Quantitative focused PhD
• Signs of loyalty, passion, and being humble

• Experience in venture capital

• Something Extra such as PR expertise, asset gathering ability, or Information Advantage, or experience working in the sector that the PE firm works in. 
• High quality names - large wirehouse experience
• How much money did you personally bring in to the firm or make for the firm?
• A stomach for a high commission/bonus structure

See our guide to creating a great Private Equity Resume
Also, see Private Equity Tip

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Tags: private equity resume, private equity resumes, buyout resume, private equity firm application, resumes, writing a private equity resume

Link to This Resource: Private Equity Resumes

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Blackstone Fidelity Deal

Blackstone Group Buyout of Fidelity National Falls Through

Earlier this month we covered the rumored buyout of Fidelity National Information Services (FIS) and now it appears that the deal has fallen through.  The consortium of private equity firms led by Blackstone Group LP (BX) scrapped its plan a buyout of Fidelity National, reportedly because the parties could not agree on a price.  Now, Fidelity has said that discussions of the buyout have stopped and the company will be attempting a leveraged recapitalization with a large buyback of shares. 

A consortium led by Blackstone Group LP (BX) dropped its plan to acquire the financial-data processor late Monday over a disagreement in price, a person familiar with the situation told The Wall Street Journal. The company confirmed Tuesday morning the discussions had ceased and said it would pursue a leveraged recapitalization with a "substantial" share repurchase.

Fidelity National's shares were recently off 5.2% to $27.37. The stock is up 17% so far this year and 46% in the last 12 months.

Robert W. Baird analyst David Koning acknowledged the recapitalization will add to Fidelity National's debt load but said similar companies have been able to support three times debt to Ebitda, and though Fidelity National has about $3.1 billion in total debt, that's just 2.1 times debt to trailing Ebitda.

Of course, there's also the possibility other bidders may emerge for Fidelity National, though it's unclear whether a private-equity deal or a purchase by a peer would be more likely.  Source

 
Read about the rumored Fidelity National buyout by Blackstone

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Tags: Blackstone, Fidelity National Information Services (FIS), Blackstone Group (BX), Blackstone buyout, private equity buyout of fidelity national, Fidelity National Buyout, Failed Buyout

Link to This Resource: Blackstone Fidelity Deal

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Barclays Management Buyout

Barclays Private Equity Expects Management Buyout

Barclays Private Equity plans to have a management buyout this summer.  The buyout branch of Barclays is one of the few private equity firms under bank ownership, but that will change with this MBO.  The move would precede fundraising for a new Barclays buyout fund this fall which would be the firm's first independent fund. 

Analysts in the private equity investor community believe the 2.4 billion euro ($3 billion) fund raised in 2007 would be the last under the Barclays umbrella.

With some 70 percent of that buyout pot invested in deals like Bounty, which sends out direct marketing packs to new mothers, and electrical engineering business Sicame, the firm is nearing the 75 percent level where raising a new fund typically starts.

A management buyout is likely to be worth a limited amount to Barclays, one of the sources said, but would underline its drive to focus on core areas. That has intensified as regulators clamp down on banks' involvement in higher risk businesses.

Britain's second biggest bank recently called a halt to new deals at Barclays Ventures, the small-cap buyout arm focusing on companies worth 10 million pounds ($14.4 million) to 50 million.  Source

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Tags: Barclays Private Equity Buyout, barclays buyout, barclays private equity, barclays management buyout, barclays private equity firm, management buyout

Link to This Resource: Barclays Management Buyout

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4 Capital Raising Secrets

Richard Wilson is an experienced third party fund marketer who consults with hedge funds and writes for HedgeFundBlogger.com.  I talk weekly with Richard and he always has some great tips on raising capital, the following is a guest post on raising capital.

There are many aspects of capital raising which are counter-intuitive.  These tend to involved lessons learned the hard way, over time that eventually gives managers who have moved up the learning curve of raising capital a distinct advantage.  

Here are the Top 4 Capital Raising Secrets I have experienced and noticed first hand that many $100M-$300M alternative asset funds are still picking up as they grow.  

• Daily Action is How Capital is Raised:  It may seem overly simplistic but many capital raisers or fund principals focus either on very short-term results or only on capital raised and not on daily progress.  Your CRM system can easily produce tangible investor pipeline development reports which can track exactly how many tangible physical actions were taken every day towards raising capital.  This has to be part of what you consider evidence that capital raising efforts are well underway.  Focusing only on capital brought in leads to un-managed expectations and hire turnover with both third party marketers and in-house marketers.
• Moving up the Capital Raising Learning Curve Quickly is a Competitive Advantage:  How well trained is your team? The average fund spends less than 2 days a year, or less than $1,000 per employee on training, yet a huge multiple of this sum of money on marketing materials, overhead and infrastructure.  What if your team was trained to raise capital 3x more than your competition? What if you could work 20% more efficiently and got 20% more accomplished every single day? That would lead your firm on a path to raising an exponentially higher amount of capital than others because you would more quickly be able to experiment and move up the learning curve on how to raise a lot of capital for your fund. Which leads to the next secret of capital raising:
• Speed of Implementation: This is something I covered in details during my last in-depth fund marketing seminar called Hedge Fund Marketing Mechanics.  The faster you move forward, experiment, test, learn, re-adjust and try more capital raising plans the faster you can adapt.  The saying goes the most successful plants and animals on earth long-term are not the fastest or strongest, they are the most adaptive.  This is something I remind myself of every day in our own business and when consulting with funds on capital raising plans. 
• Choosing the right investor channel is key and 5 minutes of planning can save you 5 weeks of experimentation and painful cold calling to the wrong investors.  I have learned this the hard way, trust me it is always best to research exactly which channels of investors and in which geographical regions are going to be most interested before trying to reach out to everyone you can.  This may seem obvious to $10M+ funds but as you hire third party marketers, train new professionals on your team, and delegate it needs to be passed on to everyone. Every team has limited resources so where you spend those each and every day is one of the most important decisions you can make.

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Tags: private equity capital raising tips, fund marketing, capital raising for private equity firms, buyout capital raising, venture capital raising, fund marketing tips, how to raise capital, raising capital, marketing your fund

Link to This Resource: 4 Capital Raising Secrets

http://privateequityblogger.com/2010/05/4-capital-raising-secrets.html

Private Equity IPO Market 2010

Private Equity-Backed IPOs are Worst Performers of 2010

2010 has looked to be a promising year for private equity, except in the IPO market.  Private equity-backed companies are losing money for investors in the initial public offering for the first time in over a decade.  Private equity-backed firms have been the worst performers in the 2010 IPO market.

The 13 offerings by private-equity funds have fallen 2 percent in the first month of trading after averaging gains every year since at least 2001, according to Bloomberg and Renaissance Capital LLC. The IPOs have also lagged behind the Standard & Poor’s 500 Index, while companies without support from buyout firms have beaten the benchmark gauge for U.S. stocks by 5.8 percentage points after their initial sales.

    The disparity indicates that investors are becoming less willing to purchase what private-equity firms are selling, even after funds from Blackstone Group LP to Apollo Global Management LLC offered the biggest IPO price cuts this year. The failure of buyers to profit from the share sales may hamper the funds as they try to offload some of the $2 trillion in leveraged buyouts made during the credit-market bubble, according to Rochdale Investment Management LLC and 1st Source Investment Advisors.  Source

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Tags: IPO, initial public offering, ipos, ipo market, best of IPOs, initial public offering 2010, 2010 IPO, private equity IPO, private equity-backed IPO

Link to This Resource: Private Equity IPO Market 2010

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Private Equity Valuation Guidelines

International Private Equity and Venture Capital Guidelines

One of the more complicated and important aspects of private equity is valuation.  Being able to accurately value portfolio investments and target companies is crucial for ensuring that the buyer and seller of an asset get a price that is fair.  Private equity firms may have to do periodic valuations of portfolio investments as part of reporting duties to investors.

In order to provide a framework for consistent valuation, International Private Equity and Venture Capital Valuation Guidelines has provided a free guide to private equity valuation.  Click this link to download the International Private Equity and Venture Capital Valuation Guidelines and you can visit this website to learn more about the guidelines.


Additionally there are many books written on valuing private companies and doing valuation on target companies for M&A.  I am currently reading Principles of private firm valuation by Stanley J. Feldman and Valuation for M&A : building value in private companies by Frank C. Evans, David M. Bishop.  I will provide reviews on both of these in the future.


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Tags: private equity, private equity valuation, valuation, investments, Private Equity Valuation Guidelines, International Private Equity and Venture Capital Guidelines, private company valuations

Link to This Resource: Private Equity Valuation Guidelines

http://privateequityblogger.com/2010/05/private-equity-valuation-guidelines.html

Venture Capital Fund Performance

VC Performance: Short-Term Gains, Long-Term Losses

Continuing with this update on the venture capital industry, the most recent data on venture capital performance shows that the industry has suffered long-term losses but produced short-term gains.  This is based off the Cambridge Associates L.L.C. U.S. Venture Capital Index.  Over the last three years ending Dec. 31, 2009 venture capital has returned -0.3% and over the last ten years performance was -0.9%.

However, more recent data shows quarterly and 1 year gains around 3% which is better than the previous year.  This probably reflects a recovery of the exit market that I expect will continue through the year at least.  Now, venture capital 10 year estimates take into account post-1999 performance, leaving out the previous boom.  So, it's not surprising that without the 1999 positive returns performance is negative over the last 10 years.

Over the last five years performance has been positive at 4.3% but less than the 5 year returns ending in Dec. 31 2008.  This is the table I am looking at, click to enlarge:

If you want to read the full benchmark report follow this link.


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Tags: venture capital, venture capital fund performance, venture capital performance, VC, venture capital investments, 10 year performance, one year performance, venture capital industry

Link to This Resource: Venture Capital Fund Performance

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Venture Capital Regulation

Weekend Update on Venture Capital: Regulation

This blog's focus is primarily the buyout aspect of private equity but we also cover venture capital, mezzanine financing and angel investors.  This weekend, I thought it would be useful to provide a quick overview of what's going on in venture capital based on my own research and conversations in the industry as well as articles and reports I've read this year.  Here is the first post in the series:


Regulation

Venture capital is seen as somewhat less vulnerable to American financial regulation, compared to buyout firms and hedge funds.  This is for multiple reasons:

1. Buyout shops and hedge funds are thought to pose a greater systemic threat.  Buyout firms perhaps less so, but because they manage such large amounts of assets regulators are inclined to reign them in along with hedge funds.  
2. Venture capital firms are more linked to small businesses and providing growth capital to budding firms.  At a time when unemployment is still very high, no politician wants to come out looking opposed to business.  
3. Lastly, venture capitals are typically smaller than buyout firms and hedge funds and therefore less capable of paying increased taxes.  Indeed, four Democratic senators and one Republican have proposed a waiver to the tax hike on carried interest--where VC's get a lot of their profits.   

I would not be surprised if these arguments will be successfully used to fend off regulation and tax increases on venture capital. 


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Tags: Venture Capital Regulation, VC, venture capital, venture capital regulations, venture capital taxes, venture capital tax, venture capital firms taxes

Link to This Resource: Venture Capital Regulation

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Blackstone 2010 Buyout Fund

Blackstone Raising Industry's Biggest Fund in 15 Months

There have been many signals that big buyouts are back and one such sign is that Blackstone is opening the biggest private equity fund in 15 months.  This shows a new confidence in investors' interest, although Blackstone rarely has trouble raising funds.  The firm is expected to raise at least $13 billion for the buyout fund.

15 months ago, CVC Capital Partners raised a $14.2 billion fund.  The fund is still below the largest private equity fund ever raised, when Blackstone amassed $21.7 billion for its fifth fund. Blackstone is also working to close the biggest private equity deal since 2007 with a joint buyout of Fidelity National Information Services (read about that deal here).

Fundraising comes as the firm is attempting to pull off the first largest private equity deals since 2007. It is part of the consortium attempting to buy US-listed Fidelity National Information Services for around $15 billion.

One investment adviser said the size of the fundraising was a sign of its strong support from investors. He said: "In this market it is not that easy to keep all investors happy, but they have been fairly consistent and have no real issues."

However, market participants said Blackstone's effort had been "impressive" given private equity fundraising has slowed. Private equity funds raised $269 billion in 2009, according to Preqin, well below the $642 billion they raised in 2008.

Fundraising has been fairly lacklustre this year, although a number of the largest firms including BC Partners, Coller Capital and EQT are expected to come back to market later this year. Source

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Tags: blackstone buyout fund, buyout funds, blackstone, bx, blackstone buyouts, fidelity national information services buyout

Link to This Resource: Blackstone 2010 Buyout Fund

http://privateequityblogger.com/2010/05/blackstone-2010-buyout-fund.html

Cable M&A

Video on Private Equity Opportunities in Cable M&A 

Here is another interesting video on how private equity firms figure into cable M&A.  Garrett Baker, president of Waller Capital Partners, gives his take on the opportunities in this sphere.  If you are viewing this through RSS or e-mail follow this link to watch the video.







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Tags: Cable, mergers and acquisitions, M&A, cable mergers, private equity firms, private equity cable

Link to This Resource: Cable M&A

http://privateequityblogger.com/2010/05/cable-m.html

KKR Shares NYSE

Video Discussing KKR Selling $500M in Shares on  NYSE

I read many articles and reports each week, so this morning I'm taking a break and watching some private equity videos.  Here is a video that caught my eye this week, it is pretty short so you can enjoy them in spare minutes during the day. 

Unfortunately, I couldn't embed it here, but you can follow this link to watch the video.  This video is Dan Primack from peHUB talking about KKR's recent decision to sell $500 million in shares on the New York Stock Exchange.  It's not really an IPO because shares are already listed in Amsterdam but it's a way for KKR to add some cash for the firm to expand.  Personally, I agree with KKR's choice to offer some of its shares on the NYSE because I think the interest is there in the public market and as Dan notes they would like to gain some advantage on other big buyout shops that aren't public.


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Tags: KKR shares, KKR public, KKR public offering, IPO, NYSE, New York Stock Exchange, NYSE private equity kkr,

Link to This Resource: KKR Shares NYSE

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Confederation of British Industry

CBI Pushes to Reject Proposed EU Private Equity Rules

The Confederation of British Industry is urging members of the European Parliament to reject proposed EU rules on private equity.  The CBI listed several complaints, asking members to vote against some of the provisions that the group fears will, "harm companies that are already struggling with the economic downturn and harm employee relations."  A major issue is the disclosure demands that many argue would force private equity firms to disclose sensitive information.  Britain has been one of the strongest critics in the EU of the proposed Directive. Read more about the EU Alternative Fund Manager Directive here.

The directive in its current form would force private equity-owned companies to disclose a swathe of what the CBI says is "commercially sensitive information" by mandating that private equity funds publish information about issues such as research and development (R&D) programmes, remuneration policies and other sensitive data on companies they own.

The business group is also concerned that plans to increase disclosure requirements on private equity-owned companies themselves are unclear and could result in widespread confusion.

The CBI further argues that the disclosure demands would "increase costs and bureaucracy, and prevent a level playing field because other privately owned companies would not be affected". It argues that they would have the effect of "stifling business innovation".

The CBI has also sounded the alarm about the directive's attempts to force improvements in private equity firms' dialogue with employees of the companies they own. It argues that private equity funds are no different to shareholders in quoted companies and that dialogue should remain between workers and management.   Source

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Tags: confederation of british industry, CBI, CBI private equity funds, private equity funds EU, European union, EU private equity, buyouts

Link to This Resource: Confederation of British Industry

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Fidelity National Buyout

Private Equity Firms Attempting Buyout of Fidelity National

Yesterday, I wrote of a rumored $10 billion private equity deal that would be a major step in the industry's recovery.  Now, a major private equity deal may be in the works as private equity firms are trying to buyout a banking and payments technology solutions provider.  Reportedly, TPG Capital, Thomas H. Lee Partners and Blackstone Group are working to purchase Fidelity National Information Services (FIS).  The company has a market value of about $11 billion and shares rose 10% on news of the deal.

THL Partners and TPG Capital tried to buy the firm five years ago but settled for a 25% stake before the company became listed on the NYSE.  Now, THL Partners is supposed to still have a 4% stake in the company and would expand that with this club deal.  Citigroup Inc (C), JPMorgan Chase & Co (JPM), and Bank of America Corp (BAC) are supposed to be the firms financing the deal.

On April 27, FIS said its profit for the first quarter rose sharply helped by substantial increase in processing and services revenues. On an adjusted basis, earnings were well above estimates, while revenue beat estimates narrowly.

During the quarter, FIS recorded acquisition related after-tax costs totaling $12.8 million or $0.03 per share. On October 1, 2009, FIS completed the acquisition of Metavante Technologies, Inc.

The deferred revenue adjustment impacted after-tax earnings by $5.6 million or $0.01 per share. These combined charges, along with purchase price amortization of intangible assets acquired through various acquisitions, resulted in net earnings from continuing operations of $94.7 million, compared to $32.7 million in the year-earlier quarter. Adjusted net earnings from continuing operations totaled $154.1 million or $0.41 per share. On average, 18 analysts’ polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts’ estimate typically excludes one-time items.  Source

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Tags: Fidelity National Buyout, Fidelity National private equity deal, Fidelity National shares, Fidelity National private, Purchase, buyout of Fidelity National, THL Partners, TPG Capital, Blackstone Group

Link to This Resource: Fidelity National Buyout

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$10 Billion Megabuyout

Banks Expecting $10 Billion Private Equity Megabuyout 

Today, I was reading a farewell note from a reporter leaving a private equity news website, Erin Griffith.  In her brief address she talks about entering the private equity industry at the end of the mega buyouts and at the onset of the recession that severely damaged the industry.  She writes, "Two and a half years later, I’m leaving, and so is the black cloud. My stories of impending doom read like they were written in another era. The unthinkable is happening. Private equity, it seems, is back on top, with almost no bruises to show for its mistakes."  Her message is to "never forget" the bad times of the last two and a half years in private equity and the mistakes that managers and investors made to get there.

This seemed timely, as I read in the Journal "bankers expect megabuyout."  This is one of many more optimistic headlines that have filled the papers and other media as of late, whether we are really out of the woods yet is debatable.  But a private equity deal worth at least $10 billion (as the megabuyout's value is rumored to be) would be a pretty strong sign that 2010 is the beginning of the return to the megabuyouts of three years ago. 

Across Wall Street, bankers are back to speculating about "The Big One."
They are referring to talk around Wall Street that there is at least one private-equity deal now on the table that could top $10 billion in value, a sum that seemed unthinkable just six months ago.

The fact that a big deal is even in the offing points to renewed vigor not seen for nearly three years in leveraged buyouts, deals in which private-equity firms take over companies with significant amounts of borrowed money.

"A large leveraged buyout is clearly doable today," said Karim Assef, the head of financial sponsors at Bank of America Corp.'s Bank of America Merrill Lynch. He added it would have to be "for the right company, with the right ratings profile and with the right mix of debt and equity."

From 2005 to 2007, private-equity firms spent roughly $1.6 trillion on deals that placed iconic American companies into private hands, from luxury retailer Neiman Marcus Group to media giant Clear Channel Communications.  Source

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Tags: private equity, megabuyout, $10 billion megadeal, buyouts, private equity buyouts, Erin Griffith, Farewell, peHUB

Link to This Resource: $10 Billion Megabuyout

http://privateequityblogger.com/2010/05/10-billion-megabuyout.html

U.S. Private Equity Destination

U.S. Private Equity

Private Equity Firms View U.S. as Attractive Destination

Private equity firms now view the United States as more attractive than Europe.  The impending regulation and heavy taxes imposed in many European countries has made the U.S. more agreeable with alternative assets fund managers.  Although the U.S. is working through its own financial regulation, many managers still expect the U.S. to be more favorable than EU countries. 

The U.S. will remain more attractive for hedge funds and private-equity firms than Europe as regulators globally seek to tighten oversight of alternative- asset managers, said hedge-fund manager Frank Brosens.

“A lot of what’s happening actually makes sense,” said Brosens, a founding partner of Taconic Capital Advisors LLC. “We like New York. The regulatory framework is just better.”

Lawmakers in Washington and Europe are pressing for tighter rules for the financial industry after the collapse of the U.S. housing market triggered the worst economic crisis since the Great Depression. Regulators see the complexity, interconnectedness and leverage of hedge funds as a greater concern for the stability of the financial system than the size of the funds, a report by the International Monetary Fund and the Bank for International Settlements said in November.

European regulators said last year they may seek to restrict hedge funds’ use of debt and limit bonuses, rules that would apply to U.S. managers seeking to market themselves to European investors. Source

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Tags: private equity, private equity funds, private equity funds in America, European union regulation, EU, U.S., relocating private equity firms, buyouts

Link to This Resource: U.S. Private Equity Destination

http://privateequityblogger.com/2010/05/us-private-equity-destination.html

CalSTRS Private Equity

CalSTRS' CIO Says He's Renegotiating Fees with PE Firms

Institutional investors are pushing their general partners to bring down fees and improve terms.  Christopher Ailman, the chief investment officer for California State Teachers' Retirement System (CalSTRS), said in a recent interview that his pension fund will be negotiating fees and other terms with its private equity partners including Blackstone Group.  He said that he hopes that CalPERS, as well as Washington and Oregon funds will follow suit in pushing back against the private equity firms they invest in.  It's an interesting interview and sheds some light on the very important back-and-forth between managers and institutional investors. If you are receiving this via RSS or E-mail please click this link to watch the video.



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Tags: CalSTRS, California State Teachers Retirement Fund, CalPERS, California investments, California institutional investors, blackstone group

Link to This Resource: CalSTRS Private Equity

http://privateequityblogger.com/2010/05/calstrs-private-equity.html

India Private Equity Deals

Size of Private Equity Deals in India Expected to Grow

Private equity deal size in India is supposed to increase, according to a new survey by Deloitte.  The large amounts of cash that investors hold and greater optimism in the market suggest that deal size in this country may significantly grow.  This emerging market is expected to flourish--deal activity has picked up in the beginning of 2010--and private equity firms are looking to make big returns from growing companies in India.  For another article on India PE, read the Challenges to Private Equity Investing in India.

Private equity investments are likely to see an uptrend in the coming days due to renewed optimism from investors flush with capital, a survey said.

"The average deal sizes are expected to rise due to the volume of capital pushing up entry multiples. Foreign fund managers are likely to be the most active investors group," consultancy firm Deloitte said in its 'Indian Private Equity Confidence Survey'.

"2010 has already seen a significant increase in deal activity, but as before, expectation on valuations may prove to be a hindrance in managing the divergent expectations of investors and promoters," Deloitte Financial Advisor Avinash Gupta said.

Furthermore, with the entry of more non-private equity players in the market and fewer quality deals to choose from, competition is slowing picking up.   Source

Read about the Challenges to Private Equity Investing in India

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Link to This Resource: India Private Equity Deals

http://privateequityblogger.com/2010/05/india-private-equity-deals.html