3i plans to pump in more here

MUMBAI: 3i, one of UK’s leading private equity firms, hopes to invest in more companies in India this year than earlier anticipated and is keenly looking for opportunities in the local buyout sector, its global chief executive told ET.

Philip Yea said India is a land of fantastic business opportunity and that 3i is in for the long-term. “We have invested over Rs 500 crore in India so far. This year, we will probably do more than we had anticipated,” he said. “We are looking at growth capital, at minority investments in fast-growing companies.

The buyout market is not as developed as it is in Europe and the US. But we will take it as it comes. I am sure that the opportunity will be there,” he added.

3i is one of the world’s leading private equity funds. It was established over 60 years ago and is perhaps the only fund in the world to be listed on the London Stock Exchange. It taps funds from other investors and also invests through its balance sheet.

“We have operations in about 14 countries. We do a lot of cross-border deals. In India, we have assembled a team of professionals who know about operations and also who know how to make money. Our job is to be in touch and take opportunities as they arise,” he added.

Mr Yea had high praise for Indian entrepreneurs who he said are thoughtful businessmen with a deep understanding of operations and a strong sense of making and building companies.

“They are determined to move beyond these shores. They are not swept away by what they have achieved.” 3i entered India last year and quickly sewed up a $45m investment in Nimbus Communications. Nimbus then went on to bag an over $600m deal with the Board of Control for Cricket in India (BCCI) for the four-year telecast rights.

This deal was followed by investments in Vijai Electricals, Indiareit, the real estate fund floated by Ajay Piramal, International Tractors of the Sonalika group. The India 3i team is headed by Anil Ahuja, the former head of JP Morgan private equity. Mahesh Chhabria of Enam Financial Consultants and Akshay Bhargava of Progeon have also joined the firm.

Mr Yea said that 3i is very interested in media, the consumer business, energy, business services and infrastructure, health care services. On the future of private equity globally, Mr Yea said that big pension funds are driving this huge inflow of money into private equity funds and that the flow at least on the equity side will continue as commitments have been made.

He added that the race among global giants such as Carlyle, Blackstone, Permira, Warburg Pincus and Goldman Sachs to raise billions of dollars further opens up the mid-market for firms such as 3i. “With their huge billions, they would only be able to look at large transactions. 3i will be left with opportunities in the mid-market segment where we are traditionally strong,” he added.