Bain Capital, an investment company, has allocated an investment worth $7 billion in India over the next three to five years, as reported in an article by Bloomberg. This came with the country’s steady politics and growth in their economy attracting more money managers overseas.
“India’s almost uncommon level of government stability is consistent with the right ingredients for strong and sustainable economic growth,” said David Gross, partner and founding member of the firm’s Asia business.
According to Pavninder Singh, partner and a member of the Asian Pacific private equity team, the firm will also be increasing its private equity and special situations investment professional teams by 15% to 20% over the next two or three years.
Global firms have been investing in India due to its strong economic growth and political stability. Notably, Brookfield Asset Management has $25 billion in assets under management across infrastructure, real estate, and private equity. Temasek Holdings Pte is planning to invest about $10 billion over the next three years.
“There is a lot more interest in India and people would like to see more exposure to India,” said Singh.
Bain is also set to explore investments in India from its global strategies within the next three to five years, according to Gross. This will include its global real estate, tech opportunities, and life sciences funds.
A report by Knight Frank, a real estate consultant, said that the improvement in transport links has allowed for the growth of housing in smaller cities, with the residential real estate reaching a nine-year high in 2022 and continuing on in the first half of 2023.
“Real estate may be the biggest opportunity and we have real estate investments from our special situations group, so we have a lot of experience there,” said Gross.
Narendra Modi, the prime minister of India, has encouraged building infrastructure through roads, highways, and trains. The administration had also pledged to make an investment of $120 billion in the financial year ending March 2024.
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