Summary
Refuge In The Long Term
Should private equity investors worry? Maybe not.See the full content of this document
Extract
Current News
Stock markets are now facing what looks like a bear out of a three-year-long hibernation and private equity (PE) funds seem to be bearing as much of the brunt as the retail investor. Stocks of companies they have invested in, over the last year, are today available at prices close to the cost of acquisition, and some have even sunk below it. (See Buyouts Take A Knock). The deals are across sectors (such as textiles, media, it software, and financial services) and some of these have seen an erosion of as much as 20- 25 per cent in value. For instance, investments by ICICI Ventures in Gateway Distriparks and by Temasek Holdings in Welspun India have been substantially marked down from the acquisition cost price post the May 18 downturn.
Private equity funds are nonplussed. Says Puneet Bhatia, MD of Texas Pacific Group and Newbridge: "No one likes to see a stock going below their investment price, but private ...See the full content of this document
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