Mumbai: Switzerland-based global buyout firm Partners Group Holding AG will not shy away from rich Indian valuations as it looks to aggressively expand its footprint in the world’s second largest democracy, a senior company executive said.
“Private market investors have to pay aggressive multiples to access India’s growth potential. Yes, it’s a high price, but per unit of growth, it can be reasonable, and we are willing to pay a full and fair price for the investments that fit our themes and meet our criteria,” David Layton, chief executive and head of private equity, told ET in an exclusive interaction.
The PE firm said last month that it had raised $15 billion for its fourth PE fund to invest in technology, healthcare, and consumer goods companies. While $6 billion was through a direct equity fund, the remaining was through separately managed accounts investing alongside the fund.
“India is a geography that has a tremendous amount of upside potential for us. The close of our recent, larger fund coincides with there being larger businesses in India for us to invest in,” Layton said.
Since 2012, Partners has deployed $2 billion across four investments in India, ahead of China where it has only deployed $500 million so far.
The PE firm stands to make more than seven to eight times its initial investment in Aavas Financiers, which went public in 2018. It invested Rs 609 crore ($90 million at exchange rates then) between 2016 and 2018 and booked a partial exit in August this year. Ecom Express, another portfolio company since late 2020, is planning to make its public market debut at a valuation of more than $2 billion.
Like several of its peers, Partners Group has also been on a deal spree amid the Covid-19 pandemic.
Earlier this year, Partners Group exited its first India investment when it sold CSS Corp to Capital Square Partners for $500 million. After accounting for leverage, the firm doubled the investment of $270 million it made in 2013.
It bought a controlling stake in ACT Broadband, a leading non-telco internet service provider, at a $1.2 billion enterprise value, in August, its largest cheque in India till date.
Partners followed that up a week after by selling Straive (formerly known as SPi Global), a global provider of technology-driven content and data solutions company, to Baring Private Equity Asia for $1 billion, making a 3x return on a 4-year-old bet.
Mumbai: Switzerland-based global buyout firm Partners Group Holding AG will not shy away from rich Indian valuations as it looks to aggressively expand its footprint in the world’s second largest democracy, a senior company executive said. “Private market investors have to pay aggressive multiples to access India’s growth potential. Yes, it’s a high price, but per unit of growth, it can be reasonable, and we are willing to pay a full and fair price for the investments that fit our themes and meet our criteria,” David Layton, chief executive and head of private equity, told ET in an exclusive interaction. The PE firm said last month that it had raised $15 billion for its fourth PE fund to invest in technology, healthcare, and consumer goods companies. While $6 billion was through a direct equity fund, the remaining was through separately managed accounts investing alongside the fund. “India is a geography that has a tremendous amount of upside potential for us. The close of our recent, larger fund coincides with there being larger businesses in India for us to invest in,” Layton said. Since 2012, Partners has deployed $2 billion across four investments in India, ahead of China where it has only deployed $500 million so far. The PE firm stands to make more than seven to eight times its initial investment in Aavas Financiers, which went public in 2018. It invested Rs 609 crore ($90 million at exchange rates then) between 2016 and 2018 and booked a partial exit in August this year. Ecom Express, another portfolio company since late 2020, is planning to make its public market debut at a valuation of more than $2 billion. Like several of its peers, Partners Group has also been on a deal spree amid the Covid-19 pandemic. Earlier this year, Partners Group exited its first India investment when it sold CSS Corp to Capital Square Partners for $500 million. After accounting for leverage, the firm doubled the investment of $270 million it made in 2013. It bought a controlling stake in ACT Broadband, a leading non-telco internet service provider, at a $1.2 billion enterprise value, in August, its largest cheque in India till date. Partners followed that up a week after by selling Straive (formerly known as SPi Global), a global provider of technology-driven content and data solutions company, to Baring Private Equity Asia for $1 billion, making a 3x return on a 4-year-old bet.