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PE funds favour education, infra and healthcare

business Updated: Sep 06, 2009 22:38 IST
Devraj Uchil
Devraj Uchil
Hindustan Times
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The post slowdown condition in India seems to have affected changes in the private equity fund investments. The focus is more on three sectors — infrastructure, health care and education.

“Recession has been an eye opener for most companies. Now there is more interest in domestic opportunity and consumption needs,” said Mohit Khullar, vice president, Equirus Capital Private Ltd.

Also, now with world economy slowly returning to normalcy, there is a renewed interest in PEs to invest in plausible ventures. “There is huge opportunity for small ticket funds in India. PE funds, which have their ear to the ground in India, are aggressively looking for investments,” said Darshan Desai, co-founder and managing partner, Euromax Capital Global Finance Ltd.

“There is huge opportunity in the area of health care, infrastructure and education, because India lacks in these spaces. Wherever there is a demand, the supply and service in this area is welcome and profitable. This is why most funds are looking at investing in these verticles” said Khullar.

In the current year, PE funds such as 3i, Fire Capital Fund, IDFC PE have invested in infra while Navis Capital, Franklin Templeton PE, Matrix Partners and Quantum (M) have invested in education. Investment in pharma and healthcare has come from PE funds Indian Angel Network, Aavishkaar India Micro Venture Capital Fund, Evolvence India Life Sciences Fund, JM Financial India Fund and India Venture Advisors (Piramal PE).

“Basic sectors in India are good and it needs areas like healthcare and education to improve. There is a very little work done in this area and private participation is must if any improvement is to be seen. And that’s what is happening,” said Ved Prakash Arya, managing director, Milestone Capital Advisors Private Ltd.