70% Rise in PE Investments in India

By admin • March 25th, 2011

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Private equity investments in small and medium enterprises (SMEs) have risen by 70% rise during the first two months of 2011. The increase shows entrepreneurs in India are willing and eager to open up and increase accessibility for private equity funds. Figures show that during the 2010 period of January and February PE investments stood at $386.19 million compared to the impressive $663.9 invested for this year in January and February.

Funds from companies such as Carlyle Group, Warburg Pincus, Zephyr Peacock and Reliance Asset Management are indicating that this may be the best time for them to invest in SMEs who have a turnover of less than 500 crore. (US $112 million)What is even more encouraging than the total PE investments, are the size of the average deal, as the average deal size had increased by 80% to $22 million. The majority of the investments were going to the financial sector, followed by utilities.

The money that SMEs are receiving is not only aiding expansion, but other key areas such as support in managing funds, accessing export markets, finding right employment, net-working and prepare for the future.

International Government Affairs & Corporate Relations Consultants for Emerging Markets

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