Blackstone having invested $15 billion in India of its $550 billion global corpus is looking for more opportunities in the country at a time of massive cash crunch across sectors, revealed Stephen Schwarzman chairman, CEO and co-Founder of the private equity firm. Amit Dixit, co-head Asia acquisitions at Blackstone and Schwarzman talked about the impact of the coronavirus on the economy in an interview with CNBC-TV18.
Schwarzman said coronavirus will provide many opportunities to invest.
“Some people won’t have enough money to make it through the crisis if their banks aren’t in great shape then they need to turn to other people like ourselves so we can buy their businesses or buy some of the assets from their businesses, we can lend them money and we can do all kinds of interesting things to help other people and benefit our investors,” he added.
On Blackston's investment stratagem, Schwarzman said: “We always like to get involved with rapidly growing companies; companies that are really good and if they don’t have the ability to finance themselves then that’s a great opportunity for us.
“Given that the financial sector in India now is under a lot of pressure and probably needs to be reconfigured in some way — and this happens to other countries from time to time — once that reconfiguration or recapitalisation occurs then the overall growth rate for a country goes up, but in the meanwhile there is a relative shortage of capital by historic standards and for a firm like Blackstone that’s a perfect match."
On the company's India strategy, Dixit said, “Our strategy in private equity, real estate and now in tactical opportunities is to buy businesses in a few select areas. So in private equity we have chosen five areas and in real estate we have chosen two areas and tactical opportunity as the name implies is more tactical. So we play in that sandbox.
“With the environment slowing down there is a lot of pressure on various businesses to find the right buyer for their assets. So Dewan Housing, we were fortunate to go in there, get Aadhar Housing Finance which has been a fantastic investment. So whether its private equity or real estate or tactical opportunities business, this slowdown in the economy combined with the credit crisis is presenting opportunities for us,” Dixit added.