In recent times Private Equity has become a force to reckon with in global financial markets, by raising huge amount of capital and using it to make big-ticket acquisitions.
The PE model is based on raising huge sums of money from investors, buying companies that offer scope for significant value addition, turning them around and selling them for a profit, 20% of which (carried interest) is major source of income for PE firms.
Judged by number of deal happenings, the Indian PE scenario seems to be immune from global imbalance at least for the time being, for the reason being Indian deals are not highly leveraged buyouts.
Once the market stablilizes and interest rates fall again the Private Equity will again be on the path of growth: beginning of a new golden age
The PE model is based on raising huge sums of money from investors, buying companies that offer scope for significant value addition, turning them around and selling them for a profit, 20% of which (carried interest) is major source of income for PE firms.
Judged by number of deal happenings, the Indian PE scenario seems to be immune from global imbalance at least for the time being, for the reason being Indian deals are not highly leveraged buyouts.
Once the market stablilizes and interest rates fall again the Private Equity will again be on the path of growth: beginning of a new golden age