“Fundraising is globally tough, though India has fallen off quite a bit because of a simple reason. Because investors are saying: I have put billions of dollars in India and not only is it not marked up, it’s stuck. I can’t keep allocating money indefinitely to India; I need to see some return.”
Who said it: Nikhil Raghavan, a principal at private-equity firm Bain Capital LLC in Mumbai.
In Context: In an interview published on Moneybeat, a WSJ blog, Raghavan describes the cooling of interest in Indian PE markets due to slowing economic growth and slow exit opportunities. Bain Capital has been in India since 2008 and has made several investments, one of which it has exited, according to the article. The article suggests that fundraising is getting more difficult, in the same way it has in most other regions around the world. Typically emerging markets have been more robust that Europe, for example, however it looks like even India is experiencing a slowdown. Overall investment activity in India is expected to fall this year with private-equity funds to allocate USD 5 billion to USD 7 billion into Indian companies this year. This compares with investments of USD 9 billion made by private-equity and venture funds in 2012, according to research firm Venture Intelligence in Chennai. As the quote above suggests what will reignite the market in India is PE investors returning some of the cash to their funds’ LPs. (Image source: Bain Capital)
Where we found it: WSJ Blogs