Private equity (PE) investors in India plan to deploy more capital in buyout transactions as more promoters are becoming comfortable in selling their businesses. India’s private equity market, which was largely led by minority investments, has seen majority deals grow to contribute around a quarter of all PE deals last year. PE firms bring a different skill set to the business as they have managed such businesses previously elsewhere. As control investors, a PE fund will look at M&A (mergers and acquisitions) and roll up acquisitions to create a market leader. The value addition from PE firms comes in the form of growing ability to attract better talent. Corporate groups looking to sell non-core assets and the availability of professional management teams are also helping. However the trend of buyouts could receive a further boost if certain regulatory and policy changes were implemented.

(Live Mint)