Prajna Capital - An Investment Guide

It’s more than just the money. For many emerging companies, Private Equity investors provide invaluable advice and the right perspective, when it matters most ARBURG PINCUS’ dalliance with Bharti Tele-Ventures from 1999 to 2005 is still remembered as one of corporate India’s most famous relationships. When it ended, the international private equity giant walked away with a cool 450% return on its investment. Bharti, too, has grown since then in leaps and bounds to become India’s largest mobile network service provider. However, the saga continues to live on and many consider the deal to be India’s first truly fruitful partnership between a corporation and a private investor. Not because of the sheer volume of money the former injected into the latter back then, but also because Warburg set a new precedent in taking a company with great potential and hand-holding it all the way to success. This deal and others like it (such as Pantaloons’ transformation assisted by ICICI Venture) helped...