Blackstone's India PiE: A billion dollars in next 2 years
US-based private equity major Blackstone is looking at making fresh investments of a billion dollars in India over the next two years.
By Gaurie Mishra, TNN |
NEW DELHI: US-based private equity major Blackstone is looking at making fresh investments of a billion dollars in India over the next two years. The fund had announced in 2005 that it would invest $1billion in Indian companies in five years. In two years alone, the fund has committed $900 million.
A fresh allocation by Blackstone—the world’s largest PE fund, with assets under management of over $88.4 billion—would make it one of the most aggressive PE funds in India.
“We may make investments of $500-600 million per year and in two years may invest more than a billion dollars. We are already much ahead of our target of $1 billion in five years and if we continue to find deals, then the allocation for India would also continue to increase,” said Blackstone India chairman and managing director Akhil Gupta.
The additional allocation will be made out of Blackstone’s $22 billion global fund. Other PE majors such as TPG, Carlyle, Apax Partners and KKR have not managed to close many transactions. While TPG is yet to close a single deal, Carlyle’s only significant investment is the minority investment in HDFC.
KKR has also done one transaction in India—the buyout of Flextronics Software Services. Blackstone, however, has closed five transactions this year worth $855 million this year.
The fund recently closed the first PE deal in the the defence and nuclear science space where it bought 26% stake in Hyderabad-based MTAR Technologies for $65 million. Blackstone has announced three other deals over the last three months—management buyout of business process outsourcing company Intelenet Global Services, buyout of garment producer Gokaldas Exports apart from picking a minority equity stake in construction company Nagarjuna Constructions.
Early this year Blackstone had also announced the deal to acquire a 26% stake in south based media group Eenadu for $275 million.
In 2006, the fund made its debut in India with a $50 million investment in Pune-based pharmaceutical company Emcure Pharma.
While some of the transactions are yet to be closed, with a fresh allocation for India and a few other deals in the pipeline, Blackstone could emerge as one of the main drivers of PE transactions in India this year.
A fresh allocation by Blackstone—the world’s largest PE fund, with assets under management of over $88.4 billion—would make it one of the most aggressive PE funds in India.
“We may make investments of $500-600 million per year and in two years may invest more than a billion dollars. We are already much ahead of our target of $1 billion in five years and if we continue to find deals, then the allocation for India would also continue to increase,” said Blackstone India chairman and managing director Akhil Gupta.
The additional allocation will be made out of Blackstone’s $22 billion global fund. Other PE majors such as TPG, Carlyle, Apax Partners and KKR have not managed to close many transactions. While TPG is yet to close a single deal, Carlyle’s only significant investment is the minority investment in HDFC.
KKR has also done one transaction in India—the buyout of Flextronics Software Services. Blackstone, however, has closed five transactions this year worth $855 million this year.
The fund recently closed the first PE deal in the the defence and nuclear science space where it bought 26% stake in Hyderabad-based MTAR Technologies for $65 million. Blackstone has announced three other deals over the last three months—management buyout of business process outsourcing company Intelenet Global Services, buyout of garment producer Gokaldas Exports apart from picking a minority equity stake in construction company Nagarjuna Constructions.
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Early this year Blackstone had also announced the deal to acquire a 26% stake in south based media group Eenadu for $275 million.
In 2006, the fund made its debut in India with a $50 million investment in Pune-based pharmaceutical company Emcure Pharma.
While some of the transactions are yet to be closed, with a fresh allocation for India and a few other deals in the pipeline, Blackstone could emerge as one of the main drivers of PE transactions in India this year.
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