"Emerging economies have positive growth rates, while the developed peers are lagging in negative zone. In such times PE players look forward to investing in those economies which can absorb the shock and reap returns on their investment," SMC Capital Equity Head Jagannadham Thunuguntla said.

1. PE investors bullish on emerging markets; to hike investments
10 Apr 2009, 1815 hrs IST, PTI
NEW DELHI: Private equity investors are turning towards emerging economies, which have become
attractive as they continue to chart growth, while
their developed peers are in negative terrain.
quot;Emerging economies have positive growth rates, while the developed peers are lagging in
negative zone. In such times PE players look forward to investing in those economies which can
absorb the shock and reap returns on their investment,quot; SMC Capital Equity Head
Jagannadham Thunuguntla said.
According to Emerging Market Private Equity Association, institutional investors believe
emerging markets will continue to present attractive investment opportunities in the coming year
and plan to maintain or expand their exposure.
quot;Investors recognise that emerging economies are the only ones still growing, and they also
know that, since private equity deals in emerging markets do not rely on debt, the collapse of the
global leveraged finance markets will not impede deal flow,quot; EMPEA President Sarah Alexander
said.
Of the BRIC (Brazil, Russia, India, China) economies, the fund partners ranked Brazil as the
second most attractive destination for investment in the next 12 months behind China and just
ahead of India, according to a survey by EMPEA.
quot;In India transactions are in the form of equity with no debt component. In contrast, the US and
the Europe focussed funds are more into leverage buyouts for which they raise bank loans,quot;
Venture Intelligence CEO Arun Natarajan said.