GLOBAL private equity (PE) firms, including Blackstone and Carlyle
Group, have made an investment of $3.8 billion in 2007 so far in the
country, up 50% from the year ago period. The record volume has been
reached through 81 M&A deals. Last year, foreign PE players had
invested $2.6 billion, data complied by global consulting firm Dealogic
Carlyle Group is the leading â€œfinancial sponsorâ€ in India with investment of $777 million via two deals, including acquisition of over 6% stake in HDFC. It is followed by Dubai International Capital, which acquired a 2.87% stake in ICICI Bank for $741 million, and Blackstone Group with $619 million inflow via eight deals. Financial sponsor is a term commonly used to refer to PE investment firms, particularly those engaged in leveraged buyout transactions. Blackstone Group, the worldâ€™s leading PE firm, has acquired stake in companies such as Intelenet Global Services, Punj Lloyd and Gokaldas Exports.
The US-based Group has also decided to pump in $150 million to acquire a stake in Nagarjuna Construction Company. A move that comes close on the heels of its decision to acquire up to 70.1% stake in Gokaldas Exports, the countryâ€™s biggest apparel exporter, for about Rs 675 crore. Blackstone Group manages around $90 billion of assets worldwide. In January, it invested about $275 million in Ushodaya Enterprises Ltd (UEL), a media and film production company owned by Ramoji Rao.
Buyouts by PE players accounted for 8% of total M&A activity in India during the year so far, down 4% from the year-ago period. This activity accounts for 16% of total Asia Pacific Financial Sponsor M&A buyout volume in 2007 year to date, up 4% compared to the year ago period. Besides, the average deal size has increased 54% to $60 million this year and the volume accounts for 16% of total Asia Pacific Financial Sponsor M&A buyout volume in 2007 so far, the Dealogic data showed. Finance is the leading industry for PE activity in India and has attracted $2 billion investments via 11 deals this year, followed by construction with $418 million through nine deals and textiles with $309 million dollars in seven deals.
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