Business Standard

Volume IconMultiples's Renuka Ramnath on blockbuster 2021 for private equities

In an interview with Business Standard, Renuka Ramnath, founder, Multiples Asset Management, shares why it has been an exceptional year from investment, exits and investment valuation perspective

ImageSurajeet Das Gupta New Delhi
private equity

Illustration: Ajay Mohanty

Q1: As we are close to the end of 2021, how has been this year for private equity space and multiples, considering that there is still uncertainty about the pandemic and the future and also businesses?
Ans:
>2021 exceptionally good year for private equities and multiples
>Capital flows seen during 2021 was close to $60 billion
>Several companies raised capital, gave exit to incumbent investors
>More than 120 deals of over $100 million in 2021
>20 deals of over $500 million ticket size in 2021
>2021 has been a record-year for multiples and investments
 

Q2: Do you see that there is a lot of euphoria about private equity funds putting in money in startups with the hope that they can make money because of the overall euphoria?
Ans:
>Capital is available for disruption
>Opportunity for entrepreneurship increased manifold
>Opportunity for disrupting businesses increased manifold
>Services part of the economy busting all charts in terms of growth
>Have real opportunities on the ground to build a business of scale 
>Capital market players don’t want to miss out on having new-age disruptive companies in their portfolio
 

Q3: What are the regulatory changes you, as an industry person look for from the government and SEBI?
 Ans:
>Private equities are pooled vehicles with investors from various categories
>Looking for regulations which will allow bringing in co-investors and give them units of specific assets and flexibility in fund documents 
>Leverages are prohibited in India, unlike international peers
>Need more clarity in taxation regulations
>There should be no GST from the fee that we collect from international investors

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First Published: Dec 03 2021 | 8:30 AM IST