Making private equity work in India

f/041007_02.pdf">CLICK HERE TO DOWNLOAD THE FULL REPORT  India is becoming a powerful magnet for private equity investment. To realise its potential, however, private equity investors and Indian companies must recognise what each brings to the table.  By some measures, India is poised to become the next big market in private equity. There have been big deals, such as the $900 million paid in 2006 for Flextronics Software Systems (now called Aricent) by KKR, the US leveraged-buyout pioneer.  There have been big successes, including the completion of the sale in 2005 by Warburg Pincus of its stake in Bharti Airtel for $1.6 billion. And there is certainly big interest: Well over 100 private equity funds are scouting for deals, making India the fastest-growing private equity market in Asia, with a 67 per cent compounded annual rate since 2002.  Yet these numbers, while impressive, tell only part of the story. The full picture is more complex. Although it