India continues to be an attractive destination for investments by Private Equity funds (both global and domestic). Most international Private Equity funds have dedicated pools for investments in Indian market. Competition in deals is increasing as a larger number of Private Equity funds are participating in every opportunity. Private Equity (PE) funds are also developing pockets of strengths across sectors and regions. Amongst others, sectors such as Manufacturing, Pharma, Renewables, Real Estate, Infrastructure, Retail, IT/ITes etc. have witnessed a lot of traction.
At Transaction Square, our professionals assist PE funds through their entire transaction lifecycle – from transaction evaluation and structuring, to investment options, to repatriation strategies, to exit grooming. At the transaction evaluation stage, we assist with due diligence support, identify potential deal structures – given the structure of the PE fund and that of the target company, suggest tax and cash efficiencies in the structure, provide negotiation support on the price and valuation, risk and litigation perspective, indemnities, reps and warranties etc. In parallel, we assist PE funds identify alternate investment options such as FDI, FVCI, FPI routes etc., recommend choice of instruments based on the commercial terms with the target, identify regulatory hurdles if any (such as FDI restrictions, applicable competition laws, SEBI Takeover code etc.). We extend extensive support in review of definitive agreements such as share purchase agreement, share subscription agreement, shareholder agreement, terms of non-compete, use of brands, related party arrangements, structuring escrow arrangements, identifying options for security package etc. Our teams clearly gather the objectives of the PE from the transaction and efficiently plan the repatriation and exit strategies so as to maximise the returns to their investors. Once the transaction is signed / closed (as may be appropriate in each case), we assist the PE and the target in end to end implementation of the entire deal structure.
We assist Private Equity funds in setting up their fund structure as well for India investments. Please refer to the section on Funds, REIT’s and InvIT’s for more details.