Top private equity players with FDI investment goals for India
Notably, the industrial and energy sectors attracted the highest inflow of investments
According to Refinitiv, a UK-based provider of financial markets data and insights, private equity investments in India saw a significant decline of nearly 60 per cent in the first quarter of 2023. Interestingly, despite this decline in value, the volume of private equity deals saw a sequential increase, spiking up by approximately 53 per cent. Notably, the industrial and energy sectors attracted the highest inflow of investments. Considering the remarkable surge in private equity funds for India in 2022, there remains a substantial pool of capital yet to be deployed.
Given these unfolding trends, let's shift our focus to some of the prominent players in the private equity landscape who currently hold India-centric foreign direct investment (FDI) aspirations.
Ethos Asset Management
The latest to join the wagon of FDI contributors in India is Ethos AM, a US-headquartered full-service Project Financing company with a global outreach. With a plan to deploy over USD 1 billion in India over the next five years, Ethos is believed to focus on infrastructure, energy, agribusiness, manufacturing, Textile, IT and other such key verticals with promising projects. Neither a fund nor a bank, Ethos is currently present with investments across 72 countries and represents the new generation of the global investment industry. Ethos is focused on financing high level projects that demonstrate long term sustainability.
Blackstone
Blackstone is reportedly amongst the largest alternative asset management firms, serving individual as well as institutional investors. Its extensive portfolio comprises more than 230 firms, and it holds over 12,000 real estate assets. The company strategically invests in thriving industries that exhibit the potential for enduring growth. In doing so, it not only fosters financial security but also nurtures robust businesses encompassing a diverse spectrum of capabilities. Recent reports indicate that this US-based private equity fund is planning to secure a stake of over 33 per cent in a leading Indian pharmaceutical company. However, an official confirmation from the company regarding this matter is still pending. Notably, the firm also gained attention recently for achieving the milestone of becoming the first private equity manager with assets exceeding $1 trillion.
KKR
KKR, also known as Kohlberg Kravis Roberts, stands as a renowned global investment firm headquartered in the United States. Its expertise lies in overseeing diverse alternative asset classes spanning sectors like real estate, energy, infrastructure, credit, and more. Notably, the company recently demonstrated its commitment to the Indian de-carbonization sector by injecting an additional $250 million into the Serentica Renewables platform, supplementing its earlier pledge of $400 million. Building on this momentum, the investment giant has also taken a significant stride by acquiring a majority share in Leap India, a prominent Indian company specializing in logistics solutions.
Apollo Global Management
Apollo Global Management is a New York-headquartered American private equity firm that primarily invests in private equity and credit. According to reports, Apollo Global Management channels investments on behalf of sovereign wealth funds, financial endowments, and pension funds. The leadership team at the firm emphasizes their dedication to empowering businesses undergoing transitions, necessitating capital infusion for both growth and transformation. Guided by a vision to enhance companies and foster enduring, sustainable value, the firm places a significant emphasis on technology, recognizing its transformative potential in the investment landscape. Notably, the company recently garnered attention for achieving an unprecedented record-breaking profit of $1 billion.