Summary
- India will continue to offer attractive investment opportunities to institutional investors in the coming months, however, certain sectors will fare much better than others.
- Private Placement Advisors will continue to play a vital role in capital raising in emerging markets such as India
Analysis
Despite the recent setback, the future looks good for the private equity sector. The emergence of developing markets such as India and China as global economic powers has opened up new venues for growth in this sector. The opening up of the government sectors and the need for massive infrastructure overhaul in these countries offers returns much higher than those offered in the traditional private equity markets of North America and Europe.
For the buy-side, investment in emerging markets offer them a much needed global diversification opportunities. With the erosion of portfolios of several limited partners such as pension funds, many will be looking into increasing their investment in the private equity sector to make up for the shortfall in returns. Finally, the increasing regulation in the public market means that many companies, which have suffered from the downturn in the markets, will turn private in order to engage in far reaching restructuring activities, which might not be possible under active market and shareholder scrutiny. We will be making history and the evolution of private equity sector, a critical component of financial market, will be leading the way.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
