“From independence till 2000, the government has played an entrepreneur’s role setting up industries. But now that private capital is available, it should step back and let private sector enter new niches and develop new industries. Government should act as a regulator rather than an entrepreneur,” says Girish Nadkarni, partner at IDFC Private Equity.
In a conversation with VCCircle, Nadkarni discusses the role of private equity and the crowding out of the government.
He is also hopeful about the government’s reforms agenda. “While it may take time (to implement reforms) as the government does not have majority in Rajya Sabha, directionally it is on the right track,” he says.
Shedding light on IDFC’s portfolio, he points to the difficult market for exits but says one can follow different strategies to ensure profitable exits.
“We have invested $1 billion and secured close to $850 million in cash and $400 million in returns as we followed a number of strategies. We have done 10 IPOs, 10 negotiated transactions, four strategic transactions and four secondary deals,” he says.
While discussing his portfolio companies from StarAgri to Green Infra, Nadkarni also points to establishment of a new fund worth $400 million with a focus on food and agriculture, healthcare, telecom value chain and consumer products and services.
