HSBC private equity

HSBC Private Equity, which has a 60 million dollar fund for investments in unlisted firms in various South Asian countries, has till now invested about 34 million dollars in about eight ventures in the region since 1997.

The fund, which is part of the HSBC group invests in companies only in the second stages upwards and would be exhausted with its investments in the seven companies.

All but one of HSBC Private Equity8217;s investments are in India, he said, adding that a major chunk of its kitty would also go to Indian ventures.

In a landmark deal last month, HSBC Private Equity funded an acquisition of a Nasdaq-listed American company Imp Inc by Hyderabad-based Teamasia semiconductors for 23.3 million dollars.

HSBC India fund along with its Hong Kong-based counterpart has picked up 59 per cent stake in Teamasia through the acquisition funding, he said.

HSBC private equity, which picked up 16 per cent stake in Shree Rama Multi-Tech Ltd in 1997 exit part of its holding during the company8217;s initial public offering IPO in February this year.

In Bangalore-based Kurlon, HSBC private equity invested about 3.6 million dollar in 1997 and completely exit from the venture at 4.6 million dollars, Marwaha said.

Recently, HSBC private equity invested two million dollars in Dishnetdsl Ltd, a broadband internet service provider based in Chennai.

On the investment criteria adopted by HSBC Private Equity, he said that it usually makes a minimum investment of three million dollars and a maximum of nine million dollars.

Generally, all its investment requires a board seat but otherwise the fund seeks no involvement in management, he said.

The company invests through ordinary shares, preferences shares and convertible debentures.