Private deal making is becoming more competitive in India with $40 billion cash pile

Consulting firm Ernst and Young has reported that there is $40 billion worth of dry powder targeted towards India. Dry powder, in the field of asset management, refers to the collective pile of investible capital available with private investors.  The estimate considers capital available with India-based private equity and venture capital funds, global and Asia-focused funds with an India allocation, and sovereign and pension funds, as well as large tech investors such as Naspers.

Indian private equity fund managers and non-Indian fund managers contribute to $9-$10 billion out of the total figure, which is at a historical high. According to an earlier article in Mint, the dry-powder was at a six year high of $7.1 billion last year.

“We are slightly behind our capital allocation schedule. This is primarily due to pricing issues, especially given the public markets comps. Also, in certain sectors, we do have a dynamic of too much private capital chasing few good opportunities,” said Sameer Sain, co-founder and CEO, Everstone Group.

Navojit Dastidar