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