Goldman Sachs may invest USD 1 billion in India over next 3-4 years
The US-headquartered investment banking firm is primarily looking to invest in small business in a strategy known internally as “platform builds”
May 23, 2017 / 12:22 PM IST
Goldman Sachs is planning to invest about USD 1 billion in India over the next three to four years through its private equity business, a senior executive was quoted as saying by Mint.
The US-headquartered investment banking firm is primarily looking to invest in small business in a strategy known internally as “platform builds”. This involves setting up a business with assistance from a professional entrepreneurial team or buying majority stake in budding businesses and pooling in a team of professionals to grow the business.
This approach is strikingly different from when Goldman Sachs first began operations in India through investments in firmly established companies such as Mahindra and Mahindra Limited and Max India, both listed.
Goldman’s first investment of this kind was when it bet USD 400 million on renewable energy firm ReNew Power Ventures Private limited. Another similar investment was in Nambiar family-owned BPL Medical Technologies, which has already grown five-fold and has done an overseas acquisition.
To even out the risk, Goldman has adopted other strategies where it will stay away from auctions but is open to obtaining majority stakes in large firms, along with purchasing distressed assets which have a potential for a turnaround.
Even as Goldman Sachs is planning to further invest in the country, it is already reaping the benefits from its earlier investments.
“Last year was a big harvest year. We exited Mahindra and Mahindra Ltd, which was a big success for us. We have also partially exited Max and also exited TVS Logistics,” Ankur Sahu, co-head of merchant banking division (Asia-Pacific) at Goldman Sachs was quoted as saying.