Tuesday, July 29, 2008

Come hell or highwater

Come hell or highwater, private equity goes about its business.

During the first half of 2008 while public markets choked by a grisly hug, PE funds did 207 deals worth $10.4 billion , as against 178 transactions worth $6.69 billion last year same period. Average deal size increased to $59 million compared to $41 million during 2007 same period.

Standard Chartered topped the charts with its $830 million investment in property fund of DLF Ltd, followed by Providence equity’s $640 m in idea cellular. Others include Symphony Capital's $450 m investment in DLF Assets, L N Mittal and Farallon Capital's $399 million in Indiabulls Real Estate and investment firm J P Morgan's 300 million dollar investment in Tower Vision India.

I like the way they go about business as usual. Oil prices are slowly receding and Y.V.Reddy is bent on reining in inflation. That’s the way it should be. Growth is not the purview of Central Bankers, that’s for M/o.Finance to handle by accelerating pace of reforms. Now that the Left is out of the ruling coalition, Govt. has a lot of bandwidth to flex its muscles. Rate hikes hit back with a lag, so it’s important for us to brace up before we are blown all over the place. Pretend as usual and go about life, investment and all.

Things will fall in place. Or where they fall is exactly their place.

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