A Report on “a Study on Private Equity in India and Analysis on a Study on Private Equity Investments”

On a weighted basis, private equity firms were invested in sectors that appreciated 4.5% in 3Q compared to 4.3% by S&P 500. Private equity firms are broadly overweight energy, consumer, and healthcare sectors, while underweight financials and communications sectors compared to the S&P 500. Strong energy returns this quarter have led to

Despite this India is still a complicated place for foreign investors. A weak parliamentary government has very little purview over the provincial and local ministers who were elected entirely separate from federal elections. The fragmented nature of the country’s political system has and will continue to prevent major

Grove Street Advisors (“GSA”) is a leading fund-of-funds, focused on investing in “low risk” top-tier private equity funds that are not excessively large nor highly levered. GSA is faced with a number of strategic alternatives to help catalyze the firm’s next stage of growth. We propose that GSA expand globally and continue to build expertise in relatively underserved global PE markets such as China and India to help meet its objectives of satisfying customer needs, enhancing its international reputation, staying responsive to trends in private equity, and ultimately maximizing profitability.

More recently, the overall weight of private equity in the Investment Office portfolio has been decreasing (from a target of 25% against the most recent number of 17%) as a consequence of Yale perceiving lack of specialization of several equity funds ("positioning themselves as asset managers") and because of the indiscipline and inexperience of several new market players. Albeit, Yale has not dismissed this asset class due to the historical success, the strong relationships developed with key managers, its know-how and experience on the private equity process and not to be perceived as a market-timer type of investor.

firms had established international offices from which to deploy money. “Major U.S. LBO operations like “Carlyle, Blackstone, TPG, KKR, and Bain Capital – all had several overseas offices by 2005.” Empire felt the pressure to compete; “by 2005, the question was not whether a large private equity firm had an international operation but what international deals it was doing.

The Investment Office made international private equity investments with much precision and caution. Foreign equities were a good source of diversification, since potential returns had less correlation with the U.S. equity market and there were fewer funds competing for deals. Yale’s initial strategy of foreign equity investments was mostly concentrated in France and England, but recently switched their focus towards more emerging markets in Asia, Latin America, and Eastern Europe, in an attempt to find potential undervalued securities due to the less efficient markets in these areas. Also, these emerging markets were growing much more quickly than markets of developed countries. Yale believed that despite the threats associated with newer, riskier markets, the rapid rate of growth allowed for loftier returns. Yale employed seven active emerging markets managers and were broken down as follows: one investing in large US-based equities, one investing in small London-based emerging markets, one investing in African emerging markets, one investing in Chinese emerging markets, one investing in Eastern Europe emerging markets, and two investing in Asian emerging

India the world's seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of the nation. The country has had breath taking reforms bringing in foreign direct investments and foreign institutional investments into the country at a brisk pace. Today India is one of the most exciting emerging markets in the world to be in. A new

Thanks to deregulation & technological advances, Financial Markets are all interlinked. Funds can thus be raised overseas, not only domestically.

Articles authored by Liam Brunt and Carlos, Key and Durpee showed how investment vehicles allowed capital to be moved to their most effective locations. By sharing risk, they promoted innovation and allowed for small ideas (the copper steam engine) to be turned into huge inventions. Currently, this is the same thing that is happening in India. According to the Economic Times, “The last three years have seen a significant expansion of the venture capital industry in India, as nearly a dozen funds raised billions of dollars to invest in local startups” (Gooptu). Money is pouring into Indian companies at a rapid rate which will allow the risk of these small companies to be shared among many investors, just like it was in the London coffee houses that laid the framework for the Industrial

In the recent past, the trend in the flow of foreign investors in the United States has been overwhelming. Notably, the numbers of foreign holdings have indicated a consistent desire to purchase stocks and bonds. For instance, external investors own at least 20% of the stocks and 43% of the bonds in the United States stock market. In 2015, the American stock market reached a peak in its investors trust and confidence. The U.S. economy has gained credibility and admiration across the world. It has remained competitive and

Emerging markets are growing faster than advanced economies due to increased human capital, better economic framework, and financial markets. Emerging markets companies are directly competing with developed-market firms and reshaping industries in the areas of technology, automobiles, business processing and consulting, and alternative energy. These developments will undoubtedly contribute to shifts in the global investment landscape over many years.

Although the U.S. has become the world 's largest economy by making up half the world 's total global market capitalization, an investor would likely miss opportunities elsewhere by holding only domestic stocks. Spreading the portfolio across a number of countries helps investors to take advantage of a larger opportunity set, reducing the chances of losses that occur only on a single market. Although, diversification cannot guarantee profits or protect against losses, historically U. S. market returns have benefited more from emerging markets than from other developed markets. In recent years, emerging markets have become more attractive to investors due to their rising economic productivity and favorable demographics, associated with

Now that you are better informed on the why invest proposition and the horrifying real-rate of return, you sure want to understand more about the common investment options available to us in India, the pros and cons, taxability, risk and typical return levels associated with each instrument.

The specific regions that attracted the most private equity investments were Serbia and the Czech Republic. Serbia accounted for nearly 25% of total investment value, while the Czech Republic received around 23% of the regional total. These two countries were closely followed by Poland and Hungary, with the four countries accounting for 80% of all private equity

Descriptive research is undertaken for study. Data collection was done from the website of BSE & SEBI of last two years.