Blackstone claims capacity to invest up to $800m a year in India
The Blackstone Group has the capacity and ability to deploy $500-800 million ever year in India if the macroeconomic environment and other factors stay favorable, according to Akhil Gupta, who oversees the firm’s India operations.
"India is primarily driven by domestic consumption and hence sectors capitalizing on domestic demand are likely to see maximum PE investments. India is expected to attract $1 trillion in infrastructure - that should also open opportunities for PE investments," Gupta, chairman and managing director of Blackstone India, told The Business Standard.
The private equity firm already has $2.8 billion in private equity capital committed to India - although it has yet to set up an India-dedicated fund - and an additional $800 million in real estate. Last week Blackstone announced that it would exit India Fund Inc., its largest India-focused closed-end mutual fund scheme, to Aberdeen Asset Management Asia. This is part of a wider strategy to exit the Asia asset management space, with more resources likely to be channeled toward private equity and real estate.
In July, the private equity firm closed its third power sector deal in 15 months, after reportedly agreeing to pay INR5 billion ($111 million) for a 25.2% stake in Visa Power, the power generation arm of Kolkata-based conglomerate Visa Group. Its previous investments in the sector were Monnet Power and Moser Baer Projects Private.
Blackstone is also tipped to bid for a 95% stake in Reliance Communications' tower unit Reliance Infratel, which could sell for around $4 billion.
The private equity firm has one high-profile exit to its name in India this year, selling its majority holding in Intelenet Global Services to Serco, a British support-services firm, for up to $630 million. This delivered a 200% return on a $203 million investment made four years ago.
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