Posts Tagged ‘Limited partners’

In India, PE & VC Funds Turn Selective :)

PE and VC funds in India have tightened their purse strings.

PE and VC funds in India have tightened their purse strings.

Private equity (PE) and venture capital (VC) funds in India have tightened their purse strings.

That’s because limited partners (LPs) β€”the main source of funding for venture capitalists β€”are reducing their exposure in this space.

According to industry estimates, there has been a drop in new investments to the tune of 71% during the first nine months of 2009 as compared to the same period last year.

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Industry experts say limited partners are miffed with the returns shown by the general partners, who manage the fund and its operations on a daily basis.

Many LPs are looking at better returns and shorter investment term cycles, instead.

LPs have instructed some of their funds to conserve cash and value in the existing portfolio. Some limited partners are not investing in private equity funds on an incremental basis.

This assumes significance in the current context because it’s tough to raise fresh funds, and the competition to attract limited partners to VCs is quite intense.

A venture capital firm is usually structured in the form of a limited liability partnership and people who invest in it are limited partners.

In India, the bulk of venture capital inflow is from Foreign markets like the US and Europe, with limited partners mostly being institutional investors such as pension funds and insurance companies and family offices who are mostly based out of the US.

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Indian venture funds are also in place, many of which tap money from overseas by means of an offshore fund.

With new funds not in sight, private equity and venture capital firms are also becoming selective.

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Movers and Shakers of Today’s Market : 22nd AuG,2009 :)

gainers and Losers

MOvers and Shakers

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Here we present you with the data of Top Gainers and Losers in BSE Index and NSE Nifty for today.

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Top Gainers shows the list of stocks that have gained the most (% terms) compared to their last closing prices. πŸ™‚

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Top Losers shows the list of stocks that have lost the most (% terms) compared to their last closing prices.

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1. Top Gainers in Sensex

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Top Gainers Sensex

2. Top Losers in Sensex

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Top Losers Sensex

3. Top Gainers in Nifty

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Top Gainers

4. Top Losers in Nifty

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Top Losers Nifty


Click HERE to view company’s detailed stock quote and company profile.

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Top Gainers shows the list of stocks that have gained the most (% terms) compared to their last closing prices. πŸ™‚

Top Losers shows the list of stocks that have lost the most (% terms) compared to their last closing prices. 😦

Institutional Investors have become more sceptical in committing funds!

Equity Head

Private equity firms are becoming cautious about making fresh investments in India with less funds flowing into this segment as institutional investors have become more skeptical in committing funds without thorough research, experts says.

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The rush for PE investments into India has slowdown a bit at present.

Managers are studying the companies more carefully before making any new investment commitment as of now.

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PE funds investing in India has turned cautious and limited partner or the part owners of funds are raising questions over the intent of the investment owing to the fact that global PE fund dipped to record lows during the second quarter of 2009.

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“Limited partners or institutional investors are increasingly becoming sceptical about their investment decisions and are questioning the intent of the General Partners,” SMC Capitals Equity Head Jagnnadham Thunuguntla said.

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PE funds are now preferring to liquidate their stake asΒ Β  capital market sentiment is improved.

The degree of scepticisim in the Indian Market has reduced to what it was few months back.

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However, with the capital market boom, PE funds are now preferring to exit via open market transactions,” Thunuguntla added.

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However, India is among the few markets wherein the PE firms are still looking at investments in times of downturn, though cautiously.

During second quarter 2009, globally 89 private equity funds reached a final close securing $79.7 billion among them. as per the latest survey.

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“The capital market bounce starting April 2009 has seen several PE (Private Equity) funds selling their investments in the open market.

The recent market bounce has given a fresh breather of life for several PE investments with impressive recovery of losses,” Thunuguntla said.

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Private equity firms are becoming cautious about making fresh investments in India with less funds flowing into this segment as institutional investors have become more sceptical in committing funds without thorough research, experts says.