With the single investment of $500 million in Indian steel pipe manufacturer Welspun group, the US-based Apollo Global Management has given a clear indication about the significance of India as an unavoidable destination for global private equity majors. Apollo’s investment is the second-largest private equity investment in India by a single investor after Carlyle’s $650-million investment in HDFC in 2007.
Apollo makes it clear they are not supposed to engage as a volume player in Indian PE space, but large investments in a few quality companies. Mintoo Bhandari, managing director, AGM India Advisors, told Business Standard, “We are growing and developing, but our activity has been cautious and so we do not intend to do a high volume of transactions but large in size.”
Interestingly, Apollo, which started Indian operations three years ago, is far ahead of Carlyle, one of the largest players in PE space, as far as the investments in India are concerned. Carlyle has done 25 investments worth $894 million (size of eight deals not disclosed) till date against two investments worth $600 million by Apollo.
At the same time, Blackstone manages about $1.5 billion through 18 deals in India, according to VCCedge data.
Since 1990, Apollo manages assets worth $40 billion as of March 31, through private equity business.
In 2008, the firm had appointed Mintoo Bhandari who was a partner at the UK unit of Apollo Management, to head the India operations.
Apollo also handles a real estate investment arm, Apollo Real Estate Advisors, which currently runs a $630-million real estate private equity fund-Sun Apollo in India in partnership with Sun group, owned by Delhi-based Khemka family.
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Sun Apollo was in news recently following its Rs 100-crore investment in a residential project SPV, led by Parsvnath Developers Ltd, in January 2011. Apart from pure PE investments, Apollo, the largest alternative asset manager, is set to tap the Indian distressed asset buyout space. Bhandari said, “We also have other activities in India, which I will not comment on, but there is a lot of activity on its way.
Over a period of next few months you will be hearing about them and they will be substantial.”
In April, Business Standard had reported about Apollo's plan to partner with ICICI Venture, to launch a special situation fund, worth $750-million. Apollo which is quite active in distressed buyouts is exploring the opportunity in Indian distressed asset space.
“We are a firm that has been conscious and deliberate about expanding in to other markets around the world and India has been very high on the priority list. It is one of the first countries we have focused on,” he said.