While private equity and venture capital funds alike historically invested in technology, corporate-linked PE players are choosing manufacturing over IT.
Biyani teamed up with Sameer Sain, a former Goldman Sachs MD, to set up Future Capital Holdings (FCH) in October 2005.
FCH owns a real estate fund called Kshitij and advises three other funds based in Mauritius, including Indivision, Horizon and Indus. It manages more than $1.4 billion (Rs 5,600 crore).
The mainstream PE players expect the corporate-linked PEs to invest in companies related to their business or the business in which they want to get into.
"Many of these companies have built up sizeable reserves and want to deploy them effectively. They come to know what is happening in a particular area by taking small stake in companies," said Nitin Deshmukh, Head-Private Equity, Kotak Private Equity.
The pharma company, Nicholas Piramal launched a $200 million-India healthcare focussed PE fund last year, that would invest in diagnostics, retail pharmacy chains and medical equipment manufacturing companies.
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"Corporates getting into PE get visibility, knowledge, expertise and a thriving business," said AK Purwar, Chairman of IndiaVenture Advisors, the PE advisory business of Nicholas Piramal. Purwar, who oversees all investments except those in the real estate sector, spoke about putting in $1 billion in the next two years.
A $500 million infrastructure fund and funds that will invest in food-based industries and financial services, are on the radar. "We haven't closed any deals yet. Blackstone took one year for their first deal. It has only been seven months for us," said Purwar.
But the deal sizes of Indian funds are generally smaller compared to players such as Blackstone.