Notes from AVCJ Private Equity Conference – Day 1

Attended the AVCJ Private Equity Conference yesterday

Here were the key takeaways:

Dr.Samiran Chakraborty,MD,Global Research,Standard Chartered

  • Rupee is undervalued by at least 10%
  • Growth recovery in India is 6-12 months away
  • Inflation will be lower next year-expect a 50-100 bps rate cut next year
  • Three stabilities-Macro,Economic and Currency-are coming together for India
  • 2015 is a year for India to lose-turnaround year for India

Sanjay Nayar,CEO,KKR India

  • 30$-40$ Billion of exits are pending in India
  • Reasons why PE in India are struggling
    • Poor Macro-Political uncertainty,currency volatility etc
    • Poor Micro-Management etc
    • Overpaid for assets
    • Much lesser influence on management
    • Lack of exits

Shankar Narayanan,MD,The Carlyle Group

  • In India, What you see is not what you get
  • Don’t invest in turnarounds as don’t believe toads can become princes
  • Two attributes to watch in an entreprenur
    • Drive/Hunger to succeed
    • Integrity
      • With respect to how he treats you as a partner
      • With respect to laws etc

Gopal Jain,Managing Partner,Gaja Capital

  • Dislike politicians.Don’t rely on them for doing the right thing
  • Focus on defensive demand, not discretionary demand
  • 90% of capital in PE in India is from global investors
  • Obsession with promoters is going away
  • Good promoters are in short supply and they know that

Renuka Ramnath,Founder & CEO,Multiples Alternate Asset Management

  • By 2020,India will be a $ 4 Trillion economy
  • The PE industry will be around 100 Billion $
  • Expect reverse flow of capital from listed to unlisted via delisting/demerger and M&A
  • Expect more of secondaries going forward

Peter Casey,Executive Chairman,Claddagh Resources

  • Commandments for Entrepreneurs
    • Get your loved ones on board
    • Listen to your inner voice and the messages the Universe is sending you
    • Don’t fear failure
    • Get a Mentor
    • Prepare to fail, because there is a good chance you will.Leave a little fuel in your tank
    • Do the right thing,don’t take shortcuts
  • Discipline is the horse that you have to ride

Niren Shah,MD,Norwest Venture Partners

  • Betting on Internet and Mobile in India
  • For an online classifieds investment,70% of ads now come from Mobile
  • Never sell anybody a lemon because they will not do business with you again

Pradeep Tagare,Director,Intel Capital India

  • Indian startup ecosystem is still evolving
  • Exits are almost non-existent
  • It takes luck to be a good VC in India

Leave a Reply

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