It's been a while since I've posted about 3i Group PLC (III/LN) -- the publicly traded (in London) private equity firm run by Phil Yea. When I bought 3i stock in 2005 the firm was doing deals in the UK and on the European Continent.
The company still does that -- but more and more of its deals and investments are in Asia these days. Including Mainland China and India. So in addition to being a play giving the portfolio exposure to Greater Europe, 3i gives us a smart (and I hope smarter) way to play Mainland China and India.
I've come across this report of 3i "eying" buyouts in India. Saurabh Shah, heading up the firm's efforts in India, gives three reasons why buyouts will pickup there:
One, large conglomerates may look at spinning out businesses that
are not on top of their priority list. “If a conglomerate wants to keep
its best business, it may decide to hive off its No. 9 or No. 10
business,” says Shah.
Two, where succession planning becomes
difficult, the company may be better served by selling out to investors
who can bring in the right mix of professional management to achieve
the company’s longer term objectives.
And three, in a
service sector-dominated economy such as India, it will be the
professional managers that a financial investor (read private equity)
brings in, that will lead to greater wealth creation.
Good article. Check it out in its entirety when the opportunity arises.
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