Home 
Funding Private Equity How to get private equity
Funding Private Equity How to get private equity
| How to get private equity |
| Funding - Private Equity |
| Written by Krishna Kumar |
| Monday, 01 October 2007 00:00 |
|
Page 1 of 5 READ ALSO
When Valiyil Korath Mathews signed the final contract closure in Trivandrum, it brought in Rs 242 crore of private equity into IBS, a travel logistics software company relatively invisible on the national radar. More importantly, it signaled that the long arms of private equity had reached the farthest corners of the country. Not a day passes without newspapers screaming their heads off about yet another multimillion dollar private equity investment being made into a virtually unknown Indian company by an even more unknown PE fund. The numbers are mindboggling to say the least. What do these investments mean? Are they for real, or are they gold at the end of the rainbow? Where do they come from? How can the company you have built get a share? And more important, is there a catch hidden in the proverbial pot of gold? These are the questions we will answer in this piece as we go behind the scenes to unravel the wonder world of private equity. What is Private Equity? The PE fund can be considered to be a serial investor, who is making a short-term investment in an established company. Angel, Venture or PE? Angel investment comes first, in the earliest stages of the formation of a company. Angel investments are typically low in value and come from individuals rather than investing organisations. The angel investor also plays the role of the mentor for the budding entrepreneur and his newly formed enterprise. An Angel typically finances the gap in startup capital; the gap between what an entrepreneur can organise on his own and what is required to start off. Since the Angel comes in at the earliest stages, the investments are the lowest while the risks are the highest. The next stage in third party equity capital is venture capital. There is a significant convergence between Angel funding and venture capital, with both coming at the early stages of the company. Venture capital typically associated with higher levels of investments in startups, could come from individuals or from funds. More likely they are from venture funds. Private equity comes once a company has established itself and is looking to fund rapid expansion. This means that PE funds look for companies that are older, may be even ones that have passed through generations and have higher valuations. PE funds pay a higher value for a minority share in the company. In a growth market, the dividing line between venture and PE gets blurred. Now, that raises the question: Should you look for venture funding or should you opt for private equity? According to Alok Mittal of Canaan Partners, there are various ways to look at it. One way is to look at what kinds of risks are taken by the investor. “When you see a lot of concept and market risks that tends to be more venture. When you see growth or finance risk, it tends to be more towards PE.” According to him, another way to look at it is the stage of the company. “Early stage investments are more venture. Then there is the time horizon. Venture tends to be more 4-6 years time horizon of investments. PE tends to be more short time. Size of investments could also be an indicator. PE funds tend to do larger investments, because they are investing in late stage companies. Venture tends to make smaller ones”. Like we said before, PE typically is a minority stake. But there are variations. In the real estate industry, we found that the preferred model is to set up a joint venture or a special purpose vehicle (SPV) for a specific project rather than to invest in the mother company. Om Choudhry, whose FIRE capital deals exclusively in real estate PE, prefers project-specific joint ventures with equal share for FIRE and the promoter, and a more active involvement, particularly in the early stages of the project.
Who can get PE?
Subbu Subramaniam of Baring Private Equity explains the process, “We actually run through a top-down analysis, as we call it. If the economy grows at 8%, which sectors will grow faster than the others? If these sectors are projected to grow at say 10-12%, which companies in that sector will grow faster than that? For instance, if you take automotive over a long term, it grows at about 1.5 times GDP. However, if you take the leader in automobiles, it can grow almost 1.5 times of the sector itself, which means 2.25 times the GDP. We try to identify companies for investment in this manner”
Set as favorite
Bookmark
Email This
Comments (29)
  written by M.Raju, July 16, 2010
hi,we are looking for the huge funds for the Ironore business against the collateral securirity in prime location of Hyderabad.contact us:91-9844938065,91-9902808366
report abuse
vote down
vote up
Votes: +0
 written by Nalini, July 05, 2010
We are IT Education Company in INDIA. We have a strong presence in Tamilnadu and in the expansion phase in other parts of South INDIA. We are looking for funding for our business expansion.
Kindly send us the details. Email : train.ind@gmail.com report abuse
vote down
vote up
Votes: +0
 written by Sunil Shah, July 05, 2010
We are seeking financially sound partner/s who can inject 10 crore for one of the largest PSU Project in India which will lead to IPO after 5 years time. Details upon request. Principle funders only.
Other projects in Solar and real estate. sunil Shah - seaforthfinance@gmail.com report abuse
vote down
vote up
Votes: +0
 written by John Maltese, June 28, 2010
Krishna:
New Vehicle Technology, offer for high value investment opportunity along the Eastern Seaboard. More than $45 mio in equity resulting from auction award. Green initiation for Transportation, Strong Warehousing and Retool for MFG - targeting the (EV) market and other green transportation supporting services. (100+/-) acres, XX Mil SqFt Plant. (To Support) a Purchase Order Option of 5000 units and New Rail to plan to 2015. Initial JVP to $5 mio, Several discussions from Mahindra, BYD, Toyota, Mazda, etc. If this is of interest reply, referral commission available. info@mqmconsult.net - John Maltese report abuse
vote down
vote up
Votes: +0
 written by Ahsan Hassan, June 04, 2010
Ahsan & Lin LLP
Attorneys info@ahsanhassan.org www.ahsanhassan.org report abuse
vote down
vote up
Votes: +0
written by Ahsan Hassan, June 04, 2010
Dear Sir,
Our firm is in a position to arrange funding for your business through a committed Sovereign Wealth Fund, from the MENA region. The investment package already endorsed by MIGA is US$ 980,000.00. The incentive is open to all companies operating at all stages of development i.e. from pre incorporation to expansion. Should you or your company wish to have further information please visit.www.miga.com/recent or send us an email with the following enclosed: 1.Company Profile. 2.Profile of at least 1 Director. 3.Business Plan of Venture. 4.Executive Summation of Business Plan. 5.LOI (Letter of Intent). Our firm would appreciate to be of relevance and service to you. Thank you. Ahsan Hassan. report abuse
vote down
vote up
Votes: +0
 written by Pallavi Parmar, May 02, 2010
Dear Mr. S.P. Sharma,
We are a investment banking company and can assist you in raising this Private equity through Indian or foreign investors or through external commercial borrowings. Pl contact me at lawyer.pallavi@gmail.com Thanks report abuse
vote down
vote up
Votes: +0
 written by S.P.SHARMA, April 25, 2010
WE ARE A CLOSELY HELD COMPANY AND RECENTLY ACQUIRED A LISTE D COMPANY. WE ARE ENGAGED IN THE MANUFACTURE OF IROEN AND STEEL BARS AND GOING IN FOR BACKWARD INTEGRATION AND SETTING UP A CAPITIVE GENERATION PLANS AT A TOTAL COST OF RS. 100.00 CR. WE NEED PRIVATE EQUITY . PL LET ME THE DETAILS.
TEGARDS. S.P.SHARMA report abuse
vote down
vote up
Votes: +1
 written by Kate, April 23, 2010 Fun ... something new Looks like I was a little time to keep up with life. ambienbuy.net report abuse
vote down
vote up
Votes: +0
 written by Ranjan, April 09, 2010
Attn VC's and PE investors:
We are a German JV in India and distributing the products made by them. The German Co. is a leading company, world-wide in its field. The products have had a tremendous response in India. We now have tie ups with all leading departmental stores in India. We are looking for a VC with a investment of 15-20 million Rs. in 2 stages to fund our expansion plan. The funding is required by the Indian partner in the JV. Details can be provided on request. report abuse
vote down
vote up
Votes: -1
 written by Mukesh Lalwani, March 24, 2010
We are working as consultant in Mumbai. We assist in Fund raising through Private Equity / ECB/ FCCB/ NCD/CP, HNI's Investment, Mezzanine funding, Debt syndication, etc. Contact us with proposal at mpmukesh@gmail.com
report abuse
vote down
vote up
Votes: +1
 written by Indalytics Advisors, February 17, 2010
Hi,
we provide valuation services to startups and other companies, which help them to pitch for VC/PE funding. We also draft business plans. Please feel free to contact us if you need any further information. www[DOT]indalytics[DOT]com report abuse
vote down
vote up
Votes: +0
 written by kalpesh maniar, February 03, 2010
Hi Mr. Zahari
I Need Funding, you have mentioned that you will fund any project that can generate 10% return, I have very attractive project that I would like to discuss, you are invited to contact me on +919221272830, alternately please give me your contact details so I can contact you. Regards Kalpesh report abuse
vote down
vote up
Votes: +2
 written by Ahmed Wardi Bin Zahari, January 28, 2010
Greetings ,
We will like to be a financial partner in your business transaction. More so, we are ready to facilitate and fund any business that is capable of generating 10% annual return on investment(AROI).JV partnership and loan financing can also be considered. Send us a brief summary of your project. If we consider it suitable for funding, a request for additional information will be requested from you. As a corporate entity, it is important that we determine the specific of your funding requirements and be of assistance to you by offering you our lending efforts. report abuse
vote down
vote up
Votes: +1
 written by saed mohamed, January 28, 2010
iam in kampala,uganada,engaged in the packaging and sale of "FLAVOURED TEA" using avariety of five spices, into tea bags and center sealed pouches.we would love to expand to cover the whole country and the region at large.by doing so,we invite private equity partners to enhance in the parches of extra marchinery and other logistics.total value needed is US $50,000/=.
saed mohamed +256701942942 saedheart256@yahoo.com kampala,uganda report abuse
vote down
vote up
Votes: +2
 written by Shinto Thomas, January 18, 2010
I like your program but i do not know how can i get the loan from you or what is the procedure, could anybody can help me? please call me by this number 9048520543
report abuse
vote down
vote up
Votes: +0
 written by rags, January 14, 2010
We are Looking for a Private Equity for major Expansions in Processed Foods & Tetra pack juice Industry, the brand is already Well established in North India and the first company to manufacture Canned foods in 1944.
Loaded With orders the company now needs support of private players. Any one interested please contact us via mail on raghavkalra@hotmail.com report abuse
vote down
vote up
Votes: +0
written by rags, January 14, 2010
We are Looking for a Private Equity for major Expansions in Processed Foods & Tetra pack juice Industry, the brand is already Well established in North India and the first company to manufacture Canned foods in 1944.
Loaded With orders the company now needs support of private players. Any one interested please contact us via mail on raghavkalra@hotmail.com report abuse
vote down
vote up
Votes: +0
 written by Chris Regan, June 22, 2009
As a top salesperson for the industry's leading technology reseller, I generated revenue of more than $11,000,000 per year at 15% profit margins. As VP of Sales for a start-up reseller, I created and launched a business model that mirrored the key factors for success employed by that industry leading reseller. Now, I want to launch this proven business model as an equity owner.
report abuse
vote down
vote up
Votes: +0
 written by neerav sharma, April 28, 2009
we seeking financially sound partner/s who can inject 3-5 crore equity in our eco-tourism project 'apple boulevard' on lucrative terms. contact--neerav081@yahoo.co.in
report abuse
vote down
vote up
Votes: +0
written by neerav sharma, April 28, 2009
we are seeking financially sound partner who can inject 5-7 crore equity in our apple boulevard project near shimla ,on lucrative terms.
report abuse
vote down
vote up
Votes: +1
 written by Shyam Agarwal, January 22, 2009
We are one of the leading organisation in UPS industry in India. We are looking for Equity participation for our expansion plan in India.
report abuse
vote down
vote up
Votes: +3
 written by thomas o connor, January 13, 2009
we are a real estate holding company looking for capital to grow.
report abuse
vote down
vote up
Votes: +0
 written by JL Mealer, January 13, 2009
Bouncing off my old purposely incomplete website, you will get a glimpse of what we do. Focusing on Mealer Electronics and Mealer American Motors Corp... (Our NON fossil fuel and non EV powered vehicles), we need funding just the same. [The stepping stone groups of Mealer Companies and our business are done for now...]
As we were accpeted by a major platform group last year, they have since dropped the funding group and bounced every developer out of the queue. Where to now? I will resurrect the US economy and the world will follow. Try me. Contact me. Any ideas? report abuse
vote down
vote up
Votes: +1
 written by Ashish Apte, December 29, 2008
Hi, Would anyone be interested in funding a private automotive supplier which supplies plastic components to well knowns OEMs in India. Company doing well since inception (20 years back) with a CAGR of 15% over the last 5 years. Funds needed for expansion
Company also interested in selling stake upto 50% to a larger MNC or Indian player with complementary products Pl contact: Ashish- 00 91 9822624797 report abuse
vote down
vote up
Votes: +2
 written by Ken, November 02, 2008
Hi,
B Venugopal can you provide me with more information abot your biz. report abuse
vote down
vote up
Votes: +0
 written by Shrikanth, October 07, 2008
Hi,
I been following DARE for quite some time and I believe It would help me tp find an Angel to fund my business. I am looking for some to fund me for my recently venture in food business. We aim to make it the "THE NEXT BIG THING IN INDIAN FOOD BUSINESS". The only problem with us is that "we think only big, we are extremely passionate about Food & Beverages..We can and we will make a difference..Just looking for some funding.... Any info about where and how to find a AI OR VC will be highly appreciated Any one please contact us shrikanth20@gmail.com. Thank you DARE.. I DARED because entrepreneurs do... report abuse
vote down
vote up
Votes: -1
 written by B Venugopal, September 20, 2008
I am running an ISO certified Manufacturing company dealing Brake Pad, Brake Lining, Clutch facings. We are OE to Ashok leyland. We have ordrs pouring in. Scope for growth is tremendous. We need funds to make positive growth.
report abuse
vote down
vote up
Votes: +1
 written by LC TOLANI, August 15, 2008
i am an enterprenuer /small industrialist manufacturer of machinery and equipments for steel plants pipe plants and solvent extraction plants, started my bussiness with zero capital, looking in to market potential i am planning for huge expansion ,seeking venture capital funds/partner,
my co. web site is www.pragyaequipments.com Interested,organisations please contact L C tolani report abuse
vote down
vote up
Votes: +1
Write comment
|
Subscribe to this comment's feed
Photo Blogs
Market Place
-
Have an Internet startup in the online space based on a unique gaming/auction model
( / Funds & Finance) -
Looking to partner with fellow CAs
( / Partners & Affiliates) -
Partners for export business
( / Partners & Affiliates)
Latest Poll
CyberMedia | PCQuest|Dataquest | Voice&Data | Living Digital | DQ Channels | DQ Week | Global Services Media | CyberMedia Events
Cyber Astro | CyberMedia Digital | DQChannelFinder | BioSpectrum | BioSpectrum Asia | Voice&DataConnect |CIOL |
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions