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Private equity fund in Transport/Logistics sector

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prashant73	Private equity fund in Transport/Logistics sector	Lead	[-]
Posts: 28 (01/03/09 23:37:43) Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Tags : None I believe there is a strong business case for creating a PE fund under IR (or as a seperate PSU). The fund will not just help provide strong and stable ROI, it will also help create opportunities for IR. Also, IR wants to use PFI/PPP in a big way. But since were largely insulated for 150 years, finding private capital and enterprise won't be easy. This PE fund can partner with Banks/Private operators and participate in investing activities in IR. There is a huge value locked up in the Transport and Logistics Industry. The PE fund will help unleash some of that value. '3i' has set up an India Infrastructure fund. The likes of Carlyle, KKR,Warburg Pincus etc would be very keen to tie hands with IR to create this fund. Reactions please Prashant Nikam IRAS 96
kparimal		#1	[-]
Posts: 35 (01/08/09 04:42:52) Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Unfortunately PE types are in for the short haul, look at the Madoff affair. What IR needs is funding whether it comes through SPV or PPP or whatever. The essential characteristic required would be long term commitment, which unfortunately PE is not presently capable of. More apt would be sovereign funds which would look at investments in India as strategic which in a way JICA is doing for the DFC. Parimal
prashant73	Short haul investment is also useful	#2	[-]
Posts: 29 (01/08/09 22:36:58) Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Dear Sir, I think JICA/Multilateral agencies would continue to invest in large projects in all sectors. The Sovereign wealth funds have shown their preference for investing in Financial services sector. Perhaps IRFC can tap into their resources. It is the shorthaul investment that the PE funds can focus on. There are many PE funds that focus on 5-7 year horizon. The Wagon Investment schemes is one area they would be interested in (perhaps Terminal Incentive scheme also). If the Cargo Aggregators or Siding owners tie up with PE funds and Operators, there will be enormous value that can be derived. The PE funds so far are reluctant to invest in Rail sector primarily because of lack of understanding/knowledge. We can take advantage of their ignorance and float a new fund to capitalise small to medium size transport business operators. It will help in boosting Rail transport sector as a whole.

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