India is a capital-starved country and Indian startups and small businesses are struggling to access large pools of capital to grow, for technology, hiring, working capital, and other needs. India needs to attract more and more overseas capital to create and grow companies. Last year, over $26 billion in private equity/venture capital funds was invested in India, over 346 Alternative Investment Funds (AIF) formed with over $5 billion of investible capital. For a $2.2 trillion economy of India’s size growing at 7+ per cent, the need for funds is enormous. Over $9 billion is waiting to be invested from earlier funds.
Private equity (PE) and venture capital (VC) investments into South-east Asia hit a record US$23.5 billion in 2017, going by an inaugural report by the Singapore Venture Capital & Private Equity Association (SVCA).
Edelweiss Alternative Asset Advisors Ltd, a unit of the Edelweiss group, achieved the targeted base offering size of Rs. 2,000 crore for its infrastructure sector focused fund—Edelweiss Infrastructure Yield Plus Fund. The fund aims to raise another Rs. 4,500 crore via a green shoe option in the next 12 months, the company said in a statement.
Hedge funds will need to adopt artificial intelligence and machine learning in order to stay competitive in the years ahead, increasing competition with the likes of Amazon for the brightest technological minds.
That is according to trade body the Alternative Investment Management Association, which spoke to 25 hedge fund executives and academics for a report entitled Perspectives — Industry leaders on the future of the hedge fund industry.
Avendus Capital is raising Rs 3,000 crore to expand its kitty on alternative investments, with the financial services firm targeting family offices, high net worth individuals and corporate treasuries to sell its products.
The government announced it had exempted investments by individuals in some categories of start-ups from the so-called ‘angel tax’. The notification says start-ups may avail of the tax concession only if total investment, including funding from angel investors (those who make the initial equity investment) does not exceed Rs 100 million.
The digital revolution is presenting a bewildering mix of risks and opportunities for investors. At a time when technology is disrupting markets and transforming businesses with alarming speed, the risk of getting blindsided is an ever-present concern. Yet it cuts both ways. The explosion of data, analytics and connectivity has dramatically enhanced PE funds’ ability to assess companies in due diligence and to improve their performance during the holding period. As markets rapidly transform, funds can find as many opportunities as risks if they have developed the ability to handicap change better than the competition.
With public markets strong and asset valuations high, private equity funds took advantage of a seller’s market in 2017. Exit value jumped 8.6%, to $366 billion, and the number of exits increased 3% to 1,063. Sellers saw strength across channels and geographies.
Some of the largest global private-equity funds raised in recent years are taking longer to invest than their peers, and the culprit could be the scale of ambition managers have had in recent years. According to Wall Street Journal analysts, private-equity managers with excess cash on their books are struggling to deploy funds as quickly as their peers, and that’s putting pressure on investor returns.
An established, award-winning financial services company is vowing to “create huge efficiencies and scalability” for the alternative investments industry by implementing Blockchain and “tokenizing an antiquated system.”