The Hindu Business Line : `Pvt equity funding good avenue for family-run biz'

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Chennai Feb. 24 Private equity (PE) funding is an excellent opportunity for family run businesses to transform and grow, according to Mr Abhay Havaldar, Managing Director, General Atlantic LLC. "PE-backed businesses can remain family businesses and yet be corporately run," he said at a seminar on `Financial Partnerships for Quantum Growth', organised by the Madras Chamber of Commerce and Industry.

PE funding can help family businesses in areas such as recruitment and promotion besides formalising their management structures and providing corporate guidance, he said.

Mr Nainesh Jaisingh, Managing Director, Standard Chartered Private Equity Advisory India, said the role of PE firms in India was changing. From being perceived only as funding sources, PE firms today were seen as partners, he said. "They (PE firms) are expected to valuate companies, advise on organic or inorganic growth strategies and actively contribute to the day-today activities of the company," he said.

PE funded growth

He said there was a large appetite for PE funded growth among Indian companies. "The focus is now on the mid cap segment," he said citing that more than half the PE deals in 2006 were less that $10 million in size.

Mr David Krucik, Director, OC&C Strategy Consultants, a London-based firm with offices in India, said India may see about $15 billion of PE funding this year, double that of last year's figure.

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`Pvt equity funding good avenue for family-run biz'