Blackstone bets big on India with investment plans worth $2.4 billion

Betting big on India is the world’s largest private equity firm Blackstone Group, which has plans to invest 60 percent (or USD 2.4 billion) of its maiden USD 4 billion Asia-focused fund in India, sources told Mint.

“Blackstone plans to deploy about USD 4 billion in Asia over the next five years,” the paper quoted two sources as saying.  Blackstone’s global private equity fund will contribute around 40 percent of the deal value for every transaction the firm does in Asia, while the new Asia fund — BCP Asia — will invest the remaining 60 percent, he added.

Moneycontrol couldn’t independently verify the report.

Why are PE firms confident about India for investments?

Blackstone is not the only PE firm to have invested in India. Many of Blackstone’s rivals are investing in India through their dedicated Asia-focused funds. What makes them so confident about India? And the answer to this is that investment opportunities in the country have multiplied over the past few years.

“Until recently, the focus of private equity interest in Asia was overwhelmingly tilted towards China given the scale of the opportunity and relative ease of exits,” said Anuj Kapoor, managing director and head of investment banking at UBS India, told the paper.

Blackstone’s latest move will help the buyout firm swiftly capitalise on such opportunities.

Blackstone’s investments in India

Till date, Blackstone has invested USD 7.5 billion in India out of USD 430 billion-worth assets it manages globally.  “India is considered to be the best investment destination in Asia. In the last couple of years, Blackstone has made successful exits with 2-4 times return on Indian investments,” a source told Mint.

Also, Blackstone will focus on industrials this year. Other than India, Blackstone will also look at investment opportunities in China, Australia, Japan and South Korea, the source added.

The firm had started operations in India in 2005.