News Corp VCCircle India Limited Partners Summit 2019:
Fast & steady – The India Story
The rise of radical nationalism, trade war, protectionism, and volatile markets are some of the issues keeping global investors on the tenterhooks and even as large economies such as Japan, the US and parts of EU have shown an uptick in growth, the overall global sentiment remains guarded. India, meanwhile, continues to shine on the global stage with its economy growing the fastest in the world.
India continues to hold investor interest mainly on account of its storied large and growing consumer market, consistent economic growth and structural reforms that have been hailed globally by industry leaders and institutions alike. Moody’s, for instance, this year upgraded India’s sovereign rating to Baa2 after 14 years and India jumped 30 places in the World Bank’s Ease of Doing Business Ranking.
The alternative investment ecosystem, too, is maturing in India.
For instance, maximum number of buyouts and control deals were struck this year while the number of secondary deals also spiked. The rise in the number of exits, the opportunities in bank loans gone bad, infrastructure, renewable energy, tech-backed enterprises are all extremely compelling stories emerging from India. To be sure, there are challenges such as volatile markets, depreciating rupee and the anxiety with regards to the forthcoming general elections. Investors, however, are kicked about the long-term opportunities here.
India LP Summit will bring together leading global LPs, GPs, entrepreneurs, investment bankers and other leaders from the ecosystem to delve deep into the macro and micro opportunities and challenges in the Indian market.
Opening address by: Jaideep Mehta, CEO, NewsCorp Mosaic Digital
09:40am – 10:00am
On one hand, India’s fast-growing economy, large consumer market, and economic reforms make for a compelling investment story. On the other hand, the immediate volatility in the market, the sliding rupee and most of all, the impending general elections beg slight caution. Do short-term blips bother investors? Could the election results trigger a change in investment outlook?
10:00am – 10:40am
Long-term opportunities, short-term challenges
Buyouts-cum-control deals took off in 2018 and how. Leading PE firms such as KKR, Apax Partners, ChrysCapital, True North, General Atlantic, Kedaara, Samara among several others struck control deals exceeding $3 billion across sectors this year, thus, marking a definitive trend. Are buyouts and controls deals here to stay?
10:40am – 11:20am
Spotting deal trends
11:20am – 11:40am
India-focussed funds, regional funds, funds-of-funds, co-investing, direct investments –LPs are using multiple channels to maximize their exposure and hedge risks of investing in a diverse market like India. Also, they are working with both multi-faceted fund houses as well as the specialist funds. Diving deep into LPs’ India strategy, and understanding their relationship with local fund managers.
11:40am – 12:00pm
LPs get creative
Chinese companies such as Alibaba and Tencent and Japan’s Softbank are pumping in billions of dollars in India at various stages of growth. Do GPs see this as a transgression into their territory? Are their investments a missed opportunity for PE or even late stage VC firms?
12:00pm – 12:15pm
Battling China and Japan in India
Evaluating the resolution process. What has worked and what is not working?
12:15pm – 12:45pm
De-stressing stressed assets
Rupee capital pools have begun to gain momentum in the market with veterans such as former Infosys founders Kris Gopalakrishnan and Mohandas Pai advocating the building and launch of a large fund ala Softbank-led Vision Fund. Even as efforts in that direction have been underwhelming, hordes of small and mid-sized family offices and high net worth individuals are warming to the idea of alternative investments. What will it take to build this segment into a dependable faction?
12:45pm – 01:15pm
The rise of local Investors
01:15pm – 02:15pm
Fund managers jumping old ship and venturing out on their own is not a new trend but it definitely became a phenomenon in 2018. What’s the lure for managers branching out on their own? What are the risks and rewards of being on their own? How do LPs choose between their relationship with an old fund and a new fund with an old manager?
02:15pm – 02:50pm
New adults on the block
Outside of IPOs, the secondary route as well as strategic sales, too, have opened up as exit options for investors. Tiger Global, Accel Partners, TPG, Apax Partners are few examples of VC and PE firms who made big bucks exiting through secondary sales. Sliding rupee may mar dollar returns in the short term but overall, exits have become easier now. Do investors agree?
02:50pm – 03:30pm
Exit, no problem
Even as the real estate market remained subdued, there was a lot of action among builders and investors thanks to government initiatives such as affordable housing. What will it take to stage a rebound in the sector? What kind of opportunities PE investors are chasing?
03:30pm – 04:10pm
Private Equity in Real Estate
Dry powder exceeding $20 billion had built up in the market by the middle of 2018. While it indicates optimism among investors about opportunities in India, it also reflects caution at their end. What is holding back this money from flowing into Indian ventures?
Beginning with GST to the Bankruptcy & Insolvency Code, the constitution of National Company Law Tribunal and the massive bank recapitalisation exercise, the Narendra Modi government ushered in some ambitious structural economic reforms in 2017. While these had little impact on economic growth facing the headwinds of demonetization, high cost of capital, the weakening rupee and the teething problems of GST, market pundits are hoping the benefits of these reforms will begin to bear fruit in 2018. The uptrend in fundraising, a record number of new funds and fund managers, increased liquidity are already pointing towards the building of a strong sentiment in the alternative investments industry. Is this the beginning of a fresh growth cycle?
Saurabh Mukherjea, CEO, Ambit Capital
Amitabh Chaudhry, MD & CEO, HDFC Standard Life Insurance
Sujan Hajra, Chief Economist, Executive Director, Institutional Equity, Anand Rathi Securities
Shankar Narayanan, Managing Director and Co-Head, Carlyle Asia Growth Partners
Rishi Aswani, Director, Duff & Phelps (Moderator)
Special address by Sumeet Kaur Kapoor Chief General Manager, Pension Fund Regulatory and Development Authority (PFRDA)
11:20am – 11:50pm
Finance minister Arun Jaitely famously said last year that India’s infrastructure doesn’t match its ambitions. While infrastructure has been a big focus area for the NDA government, 2017 turned out to be a challenging year for the industry. Last year, output growth nearly halved in comparison with 2016 and the issue of loan defaults continued to plague the sector. But these adversities turned out to be a good opportunity for deal makers. Sovereign wealth funds and global PE firms struck quite a few sweet deals in the year. What big opportunities await the core sector investors in 2018?
M.K. Sinha, Managing Partner and Chief Executive Officer, IDFC Alternatives
Virender Pankaj, Chief Executive – Wholesale Finance & Group Head – Sell Down, L&T Financial Services
Yeshwanth M Kini, CEO-India, KAUP Capital
Kailash Vaswani, Deputy CFO, ReNew Power Ventures
Vineetha MG, Partner, Samvad Partners (Moderator)
11:50pm – 12:35pm
Infrastructure Sector — Opportunities in Adversities
12:35pm – 02:00pm
Private equity investments in real estate, amounting to $4.2 billion, were a high point in 2017. Accounting for all the top five deals, commercial real estate continued to be the focus are for private equity investors. The dynamics for the entire sector, however, is set to change with the introduction of Real Estate Regulation and Development Act. The reforms ushered in by the Act – which include stipulations such as mandatory registrations and prior approvals before the launch of a project, and 70% proceeds in an escrow account, among others – require changes in the way deals are structured and investment formats formalised. What are the advantages and hurdles investors and developers will be faced with on account of RERA?
Amit Bhagat, CEO and Managing Director, ASK Property Investment Advisors
Vikas Chimakurthy, Director, Kotak Realty Fund
Sharad Mittal, Director & Head Real Estate Fund, Motilal Oswal Real Estate Investment Advisors
Puneet Bhatia, Director and Head Real Estate, Mirae Asset Global Investments
Arpito Mukerji, Principal, Apollo Global Management
02:00pm – 02:45pm
RERA – A Boon or Bane for Real Estate
India is known to be the home to the largest number of small and mid-sized companies in the world. A large section among these is on the lookout for committed capital that will help them break out of constrained growth environment and scale up meaningfully. There are several success stories of private equity firms lending a helping hand to such companies and making handsome returns in the process. It is, however, a challenge to pick the right bets from among the large pool of such companies. Should PE firms have sector specific strategies or a diversified approach is a safer route while traversing through the large mid-market landscape?
Gopal Jain, Managing Partner, Gaja Capital
Jayanta Banerjee, Managing Partner, ASK Pravi Capital Advisors
Srikrishna Dwaram, Partner, True North
Inderbir Singh, Principal, IFC Asset Management
Akshay Kiran, Managing Director, East India Capital Management
Udai Dhawan, Managing Director & India Head, Standard Chartered Private Equity
02:45pm – 03:30pm
Catch in the middle – Mid-Market Growth Opportunities
03:30pm – 04:00pm
VC funding in India is no more the preserve of venture capital firms as hordes of angel investors and private equity funds have pitched their tents on what was hitherto a venture capital backyard. Is this the reason for a constricted VC play in India or is there more to what meets the eye?
Rajesh Raju, Managing Director, Kalaari Capital
Rehan Yar Khan, General Partner & Founder, Orios Venture Partners
Kaushik Anand, Head of India Investments, CapitalG
Kirill Kozhevnikov, Partner, Managing Director, Insitel/Sistema Asia Fund Advisory
Sanjay Nath, Managing Partner, Blume Ventures
04:00pm – 04:40pm
Risk Capital – Feeling the squeeze
Founder and Managing Partner
AZB & Partners
Founder, CEO and MD
Multiples Alternate Asset Management
Managing Director, Head of Investment Risk and Strategy in the Financial Risk group
Managing Partner & Co-founder
Kedaara Capital Investment Managers Limited
Senior Vice President
Managing Director & CEO and Co-head, Private Equity
ICICI Venture Funds Management Co. Ltd.
Chairman & MD
Regional Manager, South Asia
Proparco – Groupe Agence Francaise de Developpement
For registration and group bookings, please reach at email@example.com/011-49711180
There is no cash refund in case you cancel the registration from your end. We will issue a credit note for an equivalent amount which you can adjust/utilise against any of our future events (under the validity period) if the registration is cancelled at least 3 days before the event, post which NO credit note will be issued.
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The year 2016
The year 2016
High valuations saw the likes of Flipkart, Snapdeal, Ola, Zomato and InMobi come under investor scrutiny in 2016 and subject to sharp mark downs by both investors and analysts. The heady run of huge promotional spends, successive rounds of funding at ever-increasing valuations and crazy traffic growth saw a pause. 2016 was indeed a year where startups, mature businesses and fund managers took a moment to reflect on the hubris.
With performance under scrutiny and a slowdown in fund raising, investors started consolidating their investments via mergers, reducing costs by pulling back on past excesses and slashing debt.
Private Equity Investments
Private Equity Investments
Big-ticket deals contributed 53% to total private equity investment value in 2016. There were 26 big-ticket deals with a total value of $6.6 billion, compared to 54 deals with a total value of $13.5 billion in 2015.
Private Equity Deals
Private Equity Deals
PE deal activity dropped by 25% from a year earlier to 1309 deals. The value of PE transactions, slumped by 44% to around $12.4 billion from $22 billion as compared to the same period last year. The data excludes Real Estate and Venture debt investments.
Venture Capital Deals
Venture Capital Deals
Venture capital deals too dropped across stages this year after peaking in 2015 with early stage funding getting significantly hit both by deal activity and value, as investors turned extremely cautious and selective in placing their bets on startups despite adequate funds at their disposal.
Information Technology sector continues to attract a dominant share of private equity investments. The sector witnessed some aggressive deal making in 2016 with 766 deals as investors reposed faith on dot coms.
Mergers & Acquisitions
Mergers & Acquisitions
Big-ticket deals accounted for only 6% of total M&A deal activity this year, while contributed a whopping 92% to total M&A value disclosed in 2016, on the back of outlier deals.
Biggest deal of the year 2017
Biggest deal of the year 2017
The biggest deal of the year came in the energy sector and involved Russian giant Rosneft. The other top deals involved domestic players in sectors such as Financials, Telecommunication and Industrials.
How was it last year?
Check out the gallery from our conference held in 2018 in Mumbai.
“We reach a point where we need to show the numbers… If you don’t see returns, it is going to be tough.”
Michael Liu, Senior Vice President, Portfolio Advisors
India continues to present a long-term potential for large companies to be built.
However, it always takes time. The gestation period is relatively long;
so investors need to be very patient.”
Chris Loh, Partner, Axiom Asia
Make sure that your fund concept is right, your bar is really high and your entrepreneur
is a guy who passes all the tests that you set. Most importantly it is the
markets which are going to help you give great exits.”
“Indian investors are yet to get comfortable with the 10-year fund cycles. It will evolve but, in the next three to five years,
I don’t see a lot of domestic capital coming into a typical PE fund structure.”
Vishal Tulsyan, CEO and MD, Motilal Oswal Private Equity