Rurash extends its capital raising expertise in alternative investment class
How did it all begin?
Over the past 20 years, the private equity sector in India has grown from nascent levels to a scale and complexity that attracts foreign investors.
The earliest private equity entrepreneurs in India started raising money in the late 1990s. Even though they had to contend with the dual challenge of persuading entrepreneurs and potential limited partners, these entrepreneurs still experienced a fair amount of prosperity.
In the 1980s and 1990s, economic liberalization measures put in place were starting to take effect, and as a result, investment opportunities in markets were emerging.
In 2001, India was declared one of the BRICs, a group of nations that pledged to eventually surpass the developed world in controlling the new global economy. Investors in private equity were no different from the rest of the world in wanting a piece of the action.
In India, money invested between 2004 and 2006 generated significant profits for private equity businesses. In fact, by 2008, commitments totalling US$8 billion had been received for fundraising for India-focused private equity funds.
The period between 2011 and 2020 marked a turning point for the Indian Private Equity/Venture Capital (PE/VC) industry as it evolved from a nascent stage to a mature ecosystem with a cumulative value ofUS$ 232.4 billion.
Global LPs have also acknowledged India’s increasing allure as a location for PE/VC investments. India has continuously been regarded as one of the top three most appealing emerging market destinations for LPs worldwide.
Need for Private Equity Services
Private equity is a different type of private financing that entails funds and investors buying out public corporations to delist their public equities or making direct investments in private companies.
Private equity raises funds from high net-worth individuals (HNIs) and institutional investors to invest in various asset classes. PEs make investments in distressed assets and leveraged acquisitions of businesses to strengthen their balance sheets or take them public. Additionally, PEs finance REITs, real estate, and venture capital funds.
Private equity offers a few advantages to startups and companies:
- Ideas and early-stage businesses/startups are financed through private equity, similar to venture capital.
- Companies choose PEs over more traditional financial instruments like high-interest bank loans because they give them access to liquidity.
- Companies that have been delisted can benefit from private equity financing because they can pursue innovative growth strategies out of the public eye since they are no longer under continual pressure to release their quarterly earnings.
Private equity firms continuously face challenges. They are under constant pressure due to high levels of competition, difficulty carrying out due diligence processes, unparalleled economic and geopolitical volatility, and challenges faced in finding a suitable opportunity.
Here comes the role of private equity services. The competent private equity services partner can help you manage your funds regularly so you can concentrate on your primary business activities.
We at Rurash help find business possibilities and blend industry knowledge with fresh, effective approaches. We assist PE firms in the creation of long-term value sustainably and transparently for all stakeholders.