As the year 2021 draws to a close, one overriding theme on Deal Street has been the interest shown by global investors in India because of the attractive proposition that most new-age companies and other existing companies have been showing, thanks to their resilience during the pandemic.
Investcorp India, a global alternatives asset manager, with over $35 billion of assets under management (AUM) globally, discussed its investment thesis for India on Big Deal.
Mohammed Alardhi, Executive Chairman at Investcorp and Rishi Kapoor, Co-CEO of Investcorp, discussed this further.
“In 2015, we had reviewed our global business. At that time, after asking our investors and seeing the growth and the opportunities in India, two-and-a-half-years ago we decided to enter. Today, we have invested half a billion dollars in private equity and real estate. Our strategy is to continue to grow in India, focusing on those sectors that we are comfortable doing and extension of our global investment thesis. Our target in India is to quadruple our AUM of half a billion dollars in five years and do more investments,” Alardhi said.
“From our perspective, pretty much from day one when we decided to enter the market in India in a big way, we saw certain secular long-term trends revolving around the young demography. That young population was increasingly digitally native and also had a marginal propensity to aspire to middle-class consumption. This (is something) that we have seen in the more developed economies of the West. It is this thesis that we are looking to back in India,” said Kapoor.
Today, Investcorp is one of the lead investors in 12 companies in India. “We are basically looking to bring to the market in India our global experience of 40 years as a private market investor and effectively implementing the same playbook of focusing on market leaders and taking them to the next logical stage of their own development,” Kapoor added.
For the entire discussion, watch the accompanying video.