The changing face of Indian private equity
What's happening in Indian private equity? The past few months have seen tremendous changes in India’s PE industry as local professionals move around in a happy merry-go-round of new and old faces. Some industry watchers say these changes and movements show the maturity of the Indian private equity industry. Others argue that such changes are unhealthy for the industry.
Probably the biggest news, although not a big surprise, is that Ashish Dhawan finally officially announced his long-time intentions to leave private equity and focus on social work in India. The founder of ChrysCapital has worked out an 18 month transition which will leave his existing team in charge of the business and him giving back to society.
The new ChrysCapital will likely focus on the middle market, which opens the PIPEs business to firms such as Nalanda and the newly resurrected Westbridge Capital, which will now focus on listed opportunities. The boys from Westbridge, Sumir Chadha, KP Balaraj, Sandeep Singhal and Surendra Jain, announced their split from Sequoia Capital and the revival of the Westbridge name, which they started in 2000.
Other notable departures include Rajeev Gupta has reportedly quit his position as head of Carlyle's Indian buyout business to return to investment banking. Despite having an accomplished career as a merchant banker, Gupta has somewhat struggled on the buy side with only the $650 million HDFC deal completed. Meanwhile another Merrill Banker, Saurabh Sonthalia, has left his job as head of Indian capital markets to work for a private equity firm.
Another interesting departure is that of Alok Gupta from Axis Private Equity, where he was founding managing director. There have been a number of reports surrounding his departures but apparently the parent, Axis Bank, wanted to exit the private equity business but shunned several attempts from various buyers (including Gupta) to relieve Axis PE from its captive status (which other LPs welcomed). The last straw for Gupta was when a reputable international investor offered to take LP interest and management from the bank but was turned away by Axis Bank.
As for the latest news on Gupta? Sources close to him say that he is considering joining a US private equity firm to start up an Indian infrastructure business, or will start his own firm with likeminded colleagues from the industry.
Finally, Goldman Sachs must be seeing big opportunities in India as it moves is big gun, Ankur Sahu, from Tokyo to Mumbai. The Goldman partner was appointed co-head of private equity and will focus on opportunities in India amongst other Asian destinations.
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