News Corp VCCircle India Limited Partners Summit 2019
Fast & steady – The India Story
The rise of radical nationalism, trade war, protectionism and volatile markets are some of the issues keeping global investors on the tenterhooks and even as large economies such as Japan, the US and parts of EU have showed an uptick in growth, the overall global sentiment remains guarded. India, meanwhile, continues to shine on the global stage with its economy growing the fastest in the world. Last year, India’s GDP grew 7.1% as against China’s 6.9% and the global average of around 3.2%. This year, India’s GDP is expected to accelerate to 7.4% despite several unique as well as global challenges including sliding rupee, liquidity crunch, oil prices and fluctuating markets.
India continues to hold investor interest mainly on account of its storied large and growing consumer market, consistent economic growth and structural reforms, particularly those kicked off by the Narendra Modi government. A few months ago, ratings agency Moody’s upgraded India’s sovereign rating to Baa2 after 14 years in the wake of improving economic fundamentals. Among the reforms, the Goods and Services Tax, or GST, led to a 50% increase in the number of indirect tax payers. The demonetization drive, which, in fact, was blamed for growth slowing in 2016, has been hailed by a large section of observers as a move that triggered a large scale digital adoption in the country even as it may not have succeeded in addressing black money that it sought to check. The direct benefit transfer scheme riding the Unique Identification Number Aadhar, the effort to bring the marginalized citizens into the mainstream by providing them access to banking, assured health insurance, the focus on affordable housing and various subsidized loans are steps that have been hailed as initiatives that will broad-base the benefits of economic growth, and overtime, contribute to it, too.
Along with macro challenges, a serious issue that India is currently grappling with is that of non-performing assets worth $150 billion primarily accumulated by leading public sector banks. The NPA challenge has cast a shadow on larger economy and sentiment as it shook investor and depositor confidence while decelerating credit deployment and leading to liquidity crunch. At the same time, NPAs have presented a rewarding opportunity for global investors to pick expensive assets on the cheap.
Meanwhile, markets in India continue to hold investor interest, the current volatility notwithstanding. The boom in 2017 had seen Indian companies across sectors raising close to $25 billion through primary markets. Initial public offerings also offered exits worth more than $1 billion to a large number of private equity and venture capital firms. The trend is likely to continue in the longer term.
These and many other macro and micro aspects of Indian market will be discussed and debated at the forthcoming annual India LP Summit 2019 organised by News Corp VCCircle. The marquee event will be attended by global and local LPs, PE and VC firms, investment banks, law firms and other industry stakeholders.
09.30 – 09.40AM
Opening address by Jaideep Mehta, CEO, News Corp VCCircle
09.40 – 10.00AM
10.00 – 10.40AM
Long-term opportunities, short term challenges
On one hand, India’s fast-growing economy, large consumer market and economic reforms make for a compelling investment story. On the other hand, the immediate volatility in the market, the sliding rupee and most of all, the impending general elections beg slight caution. Do short-term blips bother investors? Could the election results trigger a change in investment outlook?
10.40 – 11.20AM
Spotting deal trends
Buyouts-cum-control deals took off in 2018 and how. Leading PE firms such as KKR, Apax Partners, ChrysCapital, True North, General Atlantic, Kedaara, Samara among several others struck control deals exceeding $3 billion across sectors this year, thus, marking a definitive trend. Are buyouts and controls deals here to stay?
11.20 – 11.40AM
11.40AM – 12.00Noon
LPs get creative
India-focussed funds, regional funds, funds-of-funds, co-investing, direct investments –LPs are using multiple channels to maximize their exposure and hedge risks of investing in a diverse market like India. Also, they are working with both multi-faceted fund houses as well as the specialist funds. Diving deep into LPs’ India strategy, and understanding their relationship with local fund managers.
12.00 – 12.15PM
Battling China and Japan IN India
Chinese companies such as Alibaba and Tencent and Japan’s Softbank are pumping in billions of dollars in India at various stages of growth. Do GPs see this as a transgression into their territory? Are their investments a missed opportunity for PE or even late stage VC firms?
12.15 – 12.45PM
De-stressing stressed assets
Evaluating the resolution process. What has worked and what is not working?
12.45 – 1.15PM
The rise of local LPs
Rupee capital pools have begun to gain momentum in the market with veterans such as former Infosys founders Kris Gopalakrishnan and Mohandas Pai advocating the building and launch of a large fund ala Softbank-led Vision Fund. Even as efforts in that direction have been underwhelming, hordes of small and mid-sized family offices and high net worth individuals are warming to the idea of alternative investments. What will it take to build this segment into a dependable faction?
1.15 – 2.15PM
2.15 – 2.50PM
New kids, err, adults on the block
Fund managers jumping old ship and venturing out on their own is not a new trend but it definitely became a phenomenon in 2018. What’s the lure for managers branching out on their own? What are the risks and rewards of being on their own? How do LPs choose between their relationship with an old fund and a new fund with old manager?
2.50 – 3.30PM
Exit, no problem
Outside of IPOs, the secondary route as well as strategic sales, too, have opened up as exit options for investors. Tiger Global, Accel Partners, TPG, Apax Partners are few examples of VC and PE firms who made big bucks exiting through secondary sales. Sliding rupee may mar dollar returns in the short term but overall, exits have become easier now. Do investors agree?
3.30 – 4.10PM
Private Equity in Real Estate
Even as the real estate market remained subdued, there was a lot of action among builders and investors thanks to government initiatives such as affordable housing. What will it take to stage a rebound in the sector? What kind of opportunities PE investors are chasing?
4.10 – 4.40PM
Rising dry powder
Dry powder exceeding $20 billion had built up in the market by the middle of 2018. While it indicates optimism among investors about opportunities in India, it also reflects caution at their end. What is holding back this money from flowing into Indian ventures?
Date: February 14, 2019
Venue: ITC Grand Central, Mumbai