Strength of public equity markets in India has given global investors more confidence: Blackstone's Jonathan Gray

President of Blackstone believes India has benefited from diversification of supply chains in Asia and a growth-focused government that has helped usher in reforms such as GST, IBC and REITs

Blackstone, the world's leading alternative asset manager and India's largest corporate landlord, is bullish about the opportunities presented by India's current stock market buoyancy, with the Nifty and Sensex climbing 15.4 percent and 13.3 percent, respectively, over the past six months.

"The strength of public equity markets ( in India) is really helpful, and that has given global investors more confidence and given us the confidence to keep going. In equity investing, after the US and UK, it's India. So that's gives you an idea of our commitment here. Building businesses that build India is the core theme at Blackstone," Jonathan Gray, President of Blackstone, said on April 3.

The firm crossed a trillion dollars in AUM (assets under management) last year and has around $50 billion of private equity and real assets in India.

"When we talk to global CIOs (chief investment officers), I generally hear a lot of enthusiasm about India. As the legal frameworks, capital markets and infrastructure continue to improve, it will become easier for capital to get here," Gray told reporters in Mumbai.

He believes India has benefited from the diversification of supply chains in Asia and a growth-focused government that has helped usher in reforms such as the GST, the insolvency and bankruptcy code and capital market initiatives like REITs (real estate investment trusts).

Blackstone launched two office REITs in India - Embassy REIT and Mindspace REIT. It has exited both. It also backs India's first pure play retail mall REIT, Nexus Select Trust which got listed in 2023.

BLACKSTONE'S NEXT BIG BETS IN INDIA?

So, what will be the key sectors on Blackstone's radar for fresh investments in India over the next 12-24 months?

After all, globally, the firm has $200 billion of dry powder and is on the hunt for good places to deploy capital.

"We will look at logistics and data centres. On the private equity side, there are segments like healthcare, financial services and travel. Going ahead, energy transition will also be very important for India," Gray, a foodie and a lover of Indian cuisine said.

He added that Blackstone has a very large global infrastructure presence, especially in the US and Europe, and he would "love to bring that here (India)".

WHAT COULD SPUR THE DEAL ENVIRONMENT IN INDIA?

On the policy front, Gray believes greater flexibility in the REIT regime and taking companies private in India would help to unlock the markets further.

"In India, to privatise a company is very challenging," he said, comparing local rules to the US market. He added that the timelines for completion of M&As in India are longer than the rest of the world.

The firm aims to add an additional $25 billion of Indian private equity assets over the next five years, Amit Dixit, Head of Private Equity ( Asia), Blackstone said in a recent interview. The firm's domestic leadership team also includes Tuhin Parikh, Amit Dalmia, Mukesh Mehta, Asheesh Mohta and Ganesh Mani.

India is a top-performing market globally for Blackstone Private Equity, with investments in Mphasis, VFS, Care Hospitals, KIMS Health, Xpressbees and Simplilearn.