Despite the fact that the global downturn has virtually hit every sector of the economy, the education sector has largely escaped any major blows; and is beckoning private equity (PE) and venture capital (VC) funds!
According to a “Private Equity Pulse – Education” report by Venture Intelligence - a research service tracking private equity and M & A activity in India – the PE, VC investors are targeting the domestic education firms, after they have noticed a huge potential in the education arena.
Notwithstanding the massive plunge in the 2009 first quarter private equity (PE) activities in China by 50 percent and in India by 87 percent, the two countries managed to sweep-clean a majority – more than 70 percent - of the PE deals in the Asia-Pacific region!
During the first quarter of 2009, from January to March, private equity firms struck 36 deals amounting to an investment of nearly $526 million. These figures mark a considerable drop from the same-quarter year-before figures of 133 deals totaling $3.9 billion in investment.
Religare Enterprises Limited (REL), a diversified financial services group of India, has notified that its venture capital arm has entered into a 50:50 JV with private equity firm Milestone Capital, for managing a Rs 600-crore healthcare and education fund 'India Build-Out Fund I'.
Under the tie-up, Religare along with its affiliates has committed to contribute Rs 60 crore in a new investment management company, which has an existing corpus of more than Rs 100 Crores.
In a latest development, Hyderabad-based drug developer Suven Life Sciences has informed that its molecule for Alzheimer's disease will soon enter phase two trials.
According to sources, the phase two trials will cost the company $20 million. The company is presently in the process of raising funds for the trials through a combination of debt, equity and strategic partner.
Last week, the company announced that more than half-a-dozen companies have shown interest in partnering the company for developing 'SUVN 502' molecule.
Red Fort Capital, a leading international real estate private equity fund, intends to invest Rs 3,200 crore by next year to cash in on the liquidity crunch in the real estate sector.
The real estate focused PE fund has planned to pump in Rs 3,200 crore in the next one year to pick up an average 50% stake each in 10-12 projects located in various cities.
The company presently is in talks with nearly 10 developers in various cities across country, which includes National Capital Region (NCR), Mumbai, Bangalore, Kolkata, Chennai, Pune and Hyderabad.
Despite the fact that the global downturn has virtually hit every sector of the economy, the education sector has largely escaped any major blows; and is beckoning private equity (PE) and venture capital (VC) funds! 
Notwithstanding the massive plunge in the 2009 first quarter private equity (PE) activities in China by 50 percent and in India by 87 percent, the two countries managed to sweep-clean a majority – more than 70 percent - of the PE deals in the Asia-Pacific region! 
Religare Enterprises Limited (REL), a diversified financial services group of India, has notified that its venture capital arm has entered into a 50:50 JV with private equity firm Milestone Capital, for managing a Rs 600-crore healthcare and education fund 'India Build-Out Fund I'. 
In a latest development, Hyderabad-based drug developer Suven Life Sciences has informed that its molecule for Alzheimer's disease will soon enter phase two trials. 
Red Fort Capital, a leading international real estate private equity fund, intends to invest Rs 3,200 crore by next year to cash in on the liquidity crunch in the real estate sector. 
