Thursday, May 3, 2007

New private/public equity fund structure in India

As reported by the single best blog on all things relating to private equity and VC in India, VC Circle, Pulak Prasad's new fund, Nalanda has attracted the ex-head of PE for Bessemer. What is most interesting about this fund is it's structure. Prasad will invest in SME listed companies, but do so in the manner and mindset of a PE investor - i.e., a limited number of investments, large stakes, 'friendly activist' approach with managements. I have seen one or two similar funds in China and I think this is a very sensible way to invest in well-managed, well-established, profitable SMEs in Chindia. This is far and away the most attractive segment in which to invest in both countries.

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