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September 2012

Global PE biggies put India story on hold

By Tarunkumar Singhal, Raman Jokhakar Chartered Accountants
Reading Time 1 mins
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“We stay away from places that have impossible governments and impossible tax regimes, which means S ayo n a r ato India,” TPG Capital founder-partner David Bonderman said recently, tearing into the country’s investment attractiveness. Bonderman, among the most influential private equity (PE) investors, said publicly what his peers quipped behind the scenes: India is possibly the least attractive of the emerging markets for PE, right now.

“Global investor confidence has been shaken badly even as India vies with not China, but Indonesia, Vietnam and South Africa for capital”, said Wilfried Aulbur, managing partner, Roland Berger, a global management consulting firm. “Private equity mostly made growth capital investments for minority stakes in Indian companies. They have had little influence on the strong promoter-driven businesses, and hardly managed what they usually do in western markets to improve return on investments,” he added.

(Source: Times of India dated 26-07-2012)

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