Bonderman praises India finance minister
David Bonderman, founder of TPG Capital, has said that the change in the finance minister for India has enhanced sentiment about the country as a place to do business. His firm plans to put more effort into hunting down local investment opportunities as a result.
The former finance minister, Pranab Mukherjee, was recently elected as president of India, and was thus replaced in the role by P. Chidambaram, who has announced plans to reassure foreign investors concerned by India's intention to engage in retrospective taxation.
"We are used to changes in policies when government changes," Bonderman told The Times of India. "But the difference in India is you see policy changes without the government changing. And it seems to be very personal. One finance minister has a set of rules, which didn't make lot of sense, and a good finance minister has a different set of rules."
Bonderman said TPG - whose India deals include Shriram Transport Finance and Vishal Retail - has been wary about investing in India, unlike its contemporaries, the Blackstone Group and KKR.
He explained that although TPG may have channeled half as much as some of its global peers into the country, it hasn't made a loss in India, and that given current government policies and the economic cycle, the time has come to be more aggressive in the market.
TPG will continue to concentrate on transactions in India's consumer financial services, retail and healthcare sectors.
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