Euphoria is building around Indian private equity, warn LPs

29 Apr, 2015

Limited Partners (LPs) or institutional investors investing in Indian private equities warn about the euphoria building around the asset class.

Such a warning is not without a reason as the heightened interest seen around private equity currently reminds the 2007-08 period—the go-go days for the industry with investments made at the peak of the asset prices with most of them being under water now.

LPs caution that Indian public markets have run a little ahead of themselves and that private equity fund managers should not repeat the mistakes that they have made before.

While everything looks good in a bull market, LPs assert that PE fund managers need to learn that long-held assumptions and complacencies can and will fall apart in a subprime ambience.

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