In a recent fireside chat hosted by Giovanni Amodeo, Manisha Girotra, CEO of Moelis India, shared her insights on the evolving landscape of private equity and capital markets in India, focusing on the outlook for 2024 and 2026. With over three decades of experience in investment banking across various global markets, Girotra highlighted significant trends and shifts in the Indian market.

Key Topics Discussed:

Private Equity Evolution in India

1. Transition from minority investments to control transactions.
2. Shift from investing in India for global markets to investing in India for its own market.
3. Increase in investment activities despite a dip in 2020, with a recovery observed in 2024.
4. Easier exit strategies for private equity firms due to deeper capital markets.

Role of Sovereign Wealth Funds and Global Private Equity Firms

1. Significant presence and increased activity of large firms like KKR, Blackstone, and sovereign wealth funds like CPPIB and GIC.
2. Expansion into real estate and other sectors, transforming the commercial landscape in cities like Mumbai.

Corporate M&A Trends

1. Shift from outbound to more domestic acquisitions as companies seek growth within the expanding $5 trillion Indian economy.
2. Current focus on acquiring companies for specific technologies or market access, particularly in IT and pharmaceuticals.

Regulatory and Market Environment

1. Removal of FDI limits in various sectors, empowering full foreign ownership and control.
2. Proactive regulatory changes facilitating smoother market entries and exits.
3. Increasing willingness among Indian promoters to exit businesses, creating opportunities for significant control deals.

Future Outlook and Trend

1. Expectation of continued robust activity in private equity, with a focus on exits potentially leading to new investments.
2. Anticipation of more debt issuances as companies engage in more capital expenditures following a period of deleveraging.

Throughout the discussion, Girotra emphasized the importance of adapting to the dynamic market conditions and leveraging global connections to facilitate cross-border transactions and investments. The insights provided by Girotra underline the significant growth and maturation of India’s investment landscape, making it an increasingly attractive market for both domestic and international investors.

Key timestamps:

00:09: Introduction to ION Influencers’ Fireside Chats
00:38: Manisha Girotra’s Background and Career
01:06: Mandate for Moelis in India
01:32: Private Equity Market in India
03:36: Overview of Private Equity Sponsors in India
05:42: Positioning within the Private Equity Process
07:08: Interest from European Players in India
08:13: Macro Trends Favoring Private Equity Operators in India
10:12: Role of Corporates and Family in M&A
12:08: Outbound Acquisitions by Indian Companies
12:26: Talent Situation in Indian Corporates
13:23: Coverage for Corporate at Moelis
14:05: Importance of Relationship in Banking
14:56: Qualities of an Amazing Banker
15:29: Track Record and Brand Growth
15:50: Building a Respected Brand
16:42: Maintaining Confidentiality
17:19: Hiring and Job Roles
18:26: Focus on Sectors
18:59: Global Network vs. Local Independence
20:06: Establishing Brand Recognition