Top News

PE Fund General Atlantic set to channel one fourth of its yearly global investments into India

Global private equity fund General Atlantic, which invests $2 billion worldwide every year, is planning to channel as much as a fourth of that into India, Chief Executive Officer Bill Ford told the Economic Times, adding that six sectors have been identified as investment targets — financial services, retail, healthcare, data-driven business process outsourcing, internet advertisin

Global private equity fund General Atlantic, which invests $2 billion worldwide every year, is planning to channel as much as a fourth of that into India, Chief Executive Officer Bill Ford told the Economic Times, adding that six sectors have been identified as investment targets — financial services, retail, healthcare, data-driven business process outsourcing, internet advertising and mobile internet.

“Our portfolio is valued at $13 billion in total of existing companies. I would love to have the Indian portfolio represent 20-25% of what we are doing,” Ford, an investor in Indian data analytics provider Mu Sigma, was quoted in the report as saying. 

Commenting about the burgeoning e-commerce market in India, Ford said that he remains cautious about e-commerce as it has “very low gross margins, very high marketing costs, and significant operating losses,” Ford added, “I haven’t seen much change in that and that will be an issue for us as investors.” 

According to the report, two themes – financial services and information technology — will continue to drive investments for General Atlantic in India. Financial services will be all about investments by the private sector, he said. As for IT, the fund is looking at the human capital edge, with talent having evolved from the business process outsourcing stage. Ford cited the investment in Mu Sigma as being based on this strategy.

“Mu Sigma is doing exactly the same thing for data analytics — BPO business model, tremendous talent in India, strong market need for data analytics and then widening the growth,” Ford told the Economic Times. 
Other active investment themes will be the consumer space, healthcare and businesses driven by mobile internet usage. Ford said that he sees a surge in internet advertising as marketing dollars being spent offline move toward digital.

“As more consumers in India spend more hours online than what they do with traditional media, more dollars will flow into the sector,” Ford told the Economic Times. “We have seen what then happens all over the world. So, that’s a place where we would want to be active.” 

The fund invested about $2 billion in India over the past 12 years in 15 companies, returning close to $1.8 billion with exits from Genpact, Patni Computers and Hexaware. 

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close