PE in India

Hey All,

Does anyone on here have experience with (or know someone who has experience with) private equity in India? Specifically wondering a few things, and I'm referencing mainly U.S. Megafunds and their Indian offices (Bain, KKR, Carlyle, Apax, Blackstone, Warburg, TPG all have them).

1. How does the recruiting process work at the associate level?
2. What is the pay like annually, both base and bonus (USD or INR, whichever anyone has info on)
3. What are the main industries that are covered, and what is the average deal size for these funds

And any additional information would be great. Trying to do some research for a good friend who will begin working out of a BB over there, and thought this might have some good answers. There is a M&I piece on it, but seems dated and frankly isn't very helpful.

Thanks guys.

Region

Comments (24)

 
Dec 9, 2015 - 1:42pm

Recruiting - Top IITs (Undergrad), IIM A and B (MBA), HYPSM level (Undergrad - if coming back from the US), M7 (MBA)

  • 1
 
Dec 10, 2015 - 9:46pm

a buddy of mine worked for one of the firms you listed in your original post. he's US born and educated and was working in NYC and did the normal PE recruitment. the firm that hired him offered for him to go to India. He was paid the same he would have in NYC. He then went to H/S and works at another MF now.

He said the work wasn't that interesting though as you can pretty much only do minority deals with family owned businesses. Unlike China, India isn't a very big or rapidly growing PE market so teams are tiny and deal flow is rather poor.

 
Best Response
Dec 10, 2015 - 11:17pm

undefined:

He said the work wasn't that interesting though as you can pretty much only do minority deals with family owned businesses. Unlike China, India isn't a very big or rapidly growing PE market so teams are tiny and deal flow is rather poor.

I've done a decent amount of business in India and while I couldn't tell you about pay, recruiting or things like that I can second this. India is a bit like the US was 100 years ago (and I don't mean that in a demeaning way or exactly 100 years ago) where families hold onto companies for generations and the goal isn't necessarily an exit, regardless of the rupee amount, but about giving your sons (not daughters for the most part) the business. That makes acquiring companies pretty difficult. It's easier to set up JV's when you bring in capital for a new venture using the in-country operator and even then there are strict FDI and debt rules that don't make sense to Westerners. Leverage almost doesn't work because it's pretty gouth to bring in foreign debt and they set interest at prime plus, and the last time I did a deal there prime was at 12%. It's worth noting that my experience is at least 3 years old so maybe Modi has changed things but I doubt it's that radical.

It's also pretty difficult if you're not Indian, and I don't mean American born and/or raised Indian-Americans, but born and raised there. There's the obvious contacts/network but there's just an Indian way of doing business that's different than the West and it's tough to be able to really know that. I've done business in a decent amount of countries and India's probably the most difficult (maybe tied with the PRC but for different reasons).

Whenever you're doing business in India you need to have a very, very trusted Indian partner even if you're with BX. There's a ton of opportunity there, I like the common law roots of India but it's a very difficult place to do business as a foreigner.

 
Feb 26, 2016 - 5:43am

Most funds in India not performing well! That's not unheard of is it. Since a lot of BB PE firms want emerging market exposure, China and India are the major markets where assets are allocated resulting in pressure for local teams to deploy capital.

There are very few exit opportunities in India for large ticket size investments making the market less lucrative. Salaries are definitely better in the junior levels, but public markets pay more in the higher ranks. From a career perspective, EM hedge funds offer better opportunities (both for learning investments and pay) rather than BB PE.

Hope this helps!

 
Feb 26, 2016 - 5:44am

Indian PE firms (Originally Posted: 04/10/2010)

Hey all,

Does anyone here know of any good PE firms in India/South Asia? How are the growth prospects like? And what about the compensation? I know a lot of US PE firms such as KKR have offices in India - is it easier to get into those offices than the ones here? What about exclusive Asian PE funds?

Any help would be appreciated. Thanks.

 
Feb 26, 2016 - 5:47am

@Speculate - where in India did you live? Did you work in finance? My dad is from India and my dad's side of the family lives in Mumbai, so I figured I could try working in PE there for a few years after IB.

@ Nuk85 - any idea about their compensation?

 
Feb 26, 2016 - 5:48am

I lived in Bombay, New Delhi, Calcutta. Im telling you its NOT easy living there even if you are of Indian Decent...The mentality there is a whole lot different than that of the Indians you meet here in the U.S who were raised here..

 
Feb 26, 2016 - 5:49am

Blackstone and Caryle have recruited in past from top Indian MBA schools and pay around 35 LPA-40 LPA base.equivalent to 100k in USD terms...which is,as you already might be knowing ,A LOT ,considering the lifestyle in India...its almost like getting 250k in the states..
as for living in Mumbai..it has improved a lot in recent years but you cannot compare it to the States..especially travelling is a huge problem..

 
Feb 26, 2016 - 5:50am

carlyle's increasing its indian presence big time:

http://www.business-standard.com/india/storypage.php?autono=391841

"
Global private equity (PE) firm Carlyle Group is planning to invest around $850 million (around Rs 3,750 crore) in India in the near future, according to the fund.

It has raised $2.55 billion under Carlyle Asia Partners (CAP) III Fund from international investors to invest in the Asia-Pacific region, excluding Japan. One- third of the amount is proposed to be invested in India. The size of the last CAP fund for the region was $1.8 billion, of which $600 million was put in housing finance company HDFC in 2007."

 
Feb 26, 2016 - 5:51am

Major perk of working in India is you can walk into a brothel, pick your prostitute and she'll lead you by the hand to her room where she'll kick her opium addicted husband out of the room for 20 minutes so she can bang you for less than you pay for a 6 piece chicken nugget here in the US. Of course if you get AIDS, there ain't nothin Ronald McDonald can do for you.

The best part is seeing the look on her face when you don't pay her. Thats why I always keep my digital camera handy in third-world countries.

Array
  • 5
 
Feb 26, 2016 - 5:56am

Marcus_Halberstram:
Major perk of working in India is you can walk into a brothel, pick your prostitute and she'll lead you by the hand to her room where she'll kick her opium addicted husband out of the room for 20 minutes so she can bang you for less than you pay for a 6 piece chicken nugget here in the US. Of course if you get AIDS, there ain't nothin Ronald McDonald can do for you.

The best part is seeing the look on her face when you don't pay her. Thats why I always keep my digital camera handy in third-world countries.

One, that's everywhere in "emerging markets" countries.

Two, bullshit. You pull this shyt in a local country with their local "mafia"/gang nearby. Each of them wants their cut, and you pulling this will get a one way ticket to the nearby physical therapy location. There's a reason the police is standing nearby and it ain't to protect you. He wants his cut.

I was "feeling" you until the last part. Now you just sound like a tool, boasting about b.s. crap.

----------------------------------------------------------------- Hug It Out
 
Mar 20, 2019 - 11:00am

I'm surprised uneducated filth like you makes it anywhere in american society. You're more likely to be made into a coolie by some wealthy Indian family honestly...they'd use you for labor and construction..after all your dirt poor blacksmith genes would come in handy.

My point being, most emerging markets are far more sophisticated than you think.

 
Feb 26, 2016 - 5:52am

Private Equity is a closed community, moreover Indian Private Equity market is flooded with many PE's, what role do you want in a PE firm?? what do you bring into the table, unless you have excellent network it is a hard fought market.

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