Limited partners (LPs or investors) and General Partners (GPs or fund managers), the principal protagonists of the dynamic private equity and venture capital industry, are literally standing at a crossroads.
This is more apparent in the current environment when the global economic meltdown has dried up of traditional liquidity channels. Those who have capital are extremely cautious in disbursing them now than ever before. Not just fund of funds, but long-term limited partners like pension funds, university endowment funds and even family offices are asking tough questions to their GPs.
LPs want more bang for their buck, greater alignment of interest, a minimum investment commitment from GPs, and, in some instances, they are even egging for a revision in the management fee. So, general partners – many of whom are battling value erosion in portfolio firms —have a tough job of convincing LPs if they are capable of making returns.
As global LPs have turned more discerning, a recent trend is that India is seeing a surge of a new class of investors in Indian private equity firms. Domestic LPs—banks, institutions and rich individuals—are opening their purse-strings far more willingly now than before. Half a dozen funds have raised over Rs 3,000 crore rupee capital from local LPs.
So there is local money available for fund managers with either strong backing or track record. There is also global capital available for funds selectively. The good news is that emerging markets like India still lie on top of allocation list of global LPs.
It is in this backdrop of an extremely dynamic and volatile environment that VCCircle decided to put together an exclusive and first-ever round table of global and domestic LPs and leading GPs in Mumbai on April 28 under the umbrella of VCCircle India Invest 2010.
Sample the distinguished speaker list: A K Purwar – Chairman, India venture Advisors; Amit Chandra – MD, Bain Capital India; Anand Sunderji – Former Director, Guggenheim Partners; Archana Hingorani – CEO, IL&FS Investment Managers Ltd.; Bala Deshpande – Senior MD, New Enterprise Associates India; Bryan Stewart – Director, Liberty Global Partners; Deepak Shahdadpuri – MD, BCP Advisors; Gautam Mehra – Executive Director, Financial Services, PwC; Gopal Srinivasan – Chairman, TVS Capital Funds; Hetal Gandhi – MD, Tano Capital Advisors; Luis Miranda – President, IDFC Private Equity; Manik Arora – Founder & MD, IDG Ventures India; Nathaniel H. Taylor – Director, KKR India; Olivia Ouyang – Investment Officer, International Finance Corporation; Praneet Singh – Managing Director, Siguler Guff; Pratima Divgi – Investment Associate, Squadron Capital; Renuka Ramnath – Founder & MD, Multiples Alternate Asset Management; Sebastiaan Van den Berg – Principal, Harbourvest Partners; Sandeep Singhal – MD, Nexus India Capital; Sudhir Sethi – Founder & CMD, IDG Ventures India; Sumir Chadha – MD, Sequoia Capital India; Varun Sood – Managing Partner, Capvent AG; Ved Prakash Arya – MD, Milestone Capital Advisors; Vishakha Mulye – MD & CEO, ICICI Venture; Dr T C Nair – Ex-Member, SEBI; T C Meenakshisundaram – Founder & MD, IDG Ventures; T S Kandhari – Executive Director, PricewaterhouseCoopers.
The nearly two dozen experts will, across five engaging sessions spread over seven riveting hours, delve on a variety of compelling industry themes such as the upsides of venture investing in India, private equity growth pangs, the tough balancing act in LP-GP relationship and the rise of the domestic base.
–The private equity fund raising is going through a significant shift. There are a few large funds who have raised capital easily in the past. Will they continue to attract the same level of interest?
–The returns are not always super when the valuations are high and the exits are rare. Are LPs still gung ho?
–There are general partners who have spun out of other firms and looking to raise capital. The first $50 million is an easy climb, after which it’s an uphill ride. What is the way forward?
–Are the management companies financed well? What are the compensation structures? The recent track record of investments and exits?
–How many first time funds are in the market and will all of them achieve their final close? Has the risk appetite come down for local and international LPs? How long term is the LP investment horizon?
–What are the key LP terms and the new trends in LP-GP relationship?
–Finally, is India the economy to bet on? The macro versus micro? Is venture investing all that bad? What is in store for growth, late stage and buyout?
You will find answers for all of them at the exclusive gathering of LPs and GPs – VCCircle India Invest 2010: The LP-GP Round Table- on April 28 at Grand Hyatt, Mumbai.
For more details on participants & registration please write to firstname.lastname@example.org. Or call Vritee at 91-120-4171111.