Sunday, December 2, 2007

Private Equity - Motilal Oswal


Motilal Oswal Financial Services has launched the India Business Excellence Fund (IBEF), a US$ 100 mn India focused Private Equity Fund.

IBEF will be managed by Motilal Oswal Venture Capital Advisors Private Limited (MOVCAPL), a wholly owned subsidiary of Motilal Oswal Financial Services Ltd. IBEF will have an investment focus of providing growth capital to Small & Medium Enterprises (SME) typically in the range of US$ 3 - 7 million. The favourable macroeconomic environment in the country is helping SMEs to flourish. A surge in the economic activity in this segment is driven by the network effect of a variety of positive macroeconomic factors, thereby creating a growing entrepreneurial base in India. However, their is a huge unserviced demand for private capital amongst SMEs to support emergence of new sectors and growth of existing sectors.

IBEF will provide growth capital to emerging SMEs across all sectors, having at least the following characteristics among other things:

Sustainable competitive advantage;
Dynamic and credible management team;
Proven track record;
Stable and consistent cash-flows;
Potential to generate significant upside at the time of exit;

MOVCAPL believes that with the right strategy, management and operational assistance, IBEF's portfoliio companies will be able to leverage their existing market position and create significant value over a period of 3-5 years.

Over the last 20 years, MOFSL has been successful in building a comprehensive equity research team, vast distribution network, and deep corporate and institutional relationships. These coupled with the experience of successfully managing a business will be leveraged by IBEF to become a financial investor of choice for companies looking for private equity investments.

Motilal Oswal Venture Capital Advisors Ltd. (‘Motilal Oswal VC’). is the latest that is capturing opportunities arising from this infrastructure investment boom. Motilal Oswal VC committed 190 million rupees to IMP Powers Ltd., which is a power equipment maker. One of the oldest names in India’s power equipment making industry, IMP Power products include various types of transformers, industrial metres and testing equipment.

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