Private equity(PE) firms who have been largely focused on providing growth capital in India are now eyeing distressed firms, which has been a domain of the Asset Reconstruction Companies (ARCs). While some of the PE players such as Vision Global, Eight Capital and ClearWater have specialised funds, which are targeting distressed assets, other PE firms are also looking to invest in such companies during these troubled times.
Vision Global, which recently entered India, is looking to invest out of it $200-million Asian fund. Independent estimates peg the total value of the country’s distressed assets at around $60 billion.
While fund managers say there is still lot of opportunity to invest in growing companies besides distressed firms, the slowdown in the Indian economy coupled with stock market crash early this year has already affected PE deal activity in the country. There has been a decline of more than 50% in the value of PE deals in India with only 46 PE deals worth $1.8 billion so far this year as compared to $6.9 billion in the corresponding period last year.
Read more in The Economic Times article.
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