The domestic and international private equity players see India as the second most attractive destination after China and feel that the country may lead the global PE recovery,according a survey.
As many as 33 per cent of investors,who participated in the survey,ranked China as the most attractive market,followed by India 29 per cent,other emerging markets 19 per cent and developed markets 20 per cent.
8220;India offers immense opportunities for PE investments and India will likely be at the forefront of a global PE recovery,8221; said a survey by research firm KPMG.
It said investors find India attractive as a PE destination because of its robust economic growth,tax environment,corporate governance and investment structuring.
8220;The next 12 months should be viewed as an opportunity to build value in portfolio terms and show that PE is an integral part of India8217;s future,8221; the survey added.
It projected 2010 to be the year of consolidation with focus on portfolio nurturing,fewer new deals or fund raising,smaller investment sizes and fewer exits.
The KPMG survey,conducted along with Stanford University8217;s Shorenstein Asia-Pacific Research Center,covered 40 General partners GPs and Limited Partners LPs. Broadly,GPs handle investment operations directly for PEs,while LPs invest in them.