Introduction

VCCircle India Limited Partners Summit 2012

Higher growth and lower leverage makes the source of risk in private equity in India less cyclical and more operational. As relevant for the emerging markets, the IRR in Indian private equity is driven by growth & efficiency as opposed to leverage or multiple expansion. Such growth focus in emerging private equity markets like that of India is also apparent in the high rate of job creation and support for smaller companies.


Indians represent possibly one of the most entrepreneurial people in the world today. This combination of opportunity, optimism and entrepreneurship is not only unique but is a powerful force that makes India a highly attractive and distinctive market for private equity investors. This only gets proven if numbers are anything to go by. Among the big Asia-Pacific markets, India saw the largest increase in deal activity in 2010. Although still far below the 2007 peak of $17 B, last year’s total deal value more than doubled from that of 2009 to $9.5 B, including venture capital, infrastructure PE investments and real estate investments. The fundamentals look just in place for PE in India to continue to grow and evolve in 2011 and beyond.


That India is finally showing exits is also reflected in the exit volumes going up. 2010 was a record year as PE funds unwound positions in 120 companies last year, taking in $5.3 billion. There are valid concerns however, over whether the market as a whole can live up to expectations.

VCCircle’s India Limited Partners Summit- 2012 , the 3rd in its annual series of highly successful forum will again gather the top India -focused limited partners, private equity and venture capital professionals at ITC Sheraton, New Delhi on 15th & 16th February to discuss the most pressing issues facing the India private equity market, including:
- How Indian PE now really need to deliver on their talks about creating value and alpha?
- Does profit growth or multiple expansions drive value creation?
- India is home to a lot of "me - too" private equity funds, and many of these funds have similar strategies and fairly generic team profiles. What differentiates?
- Indian technology venture exits: Still more of a funnel than actual exits?


Agenda

Day I, 15th February

9:30am - 9:40am
Introduction Note
Sahad P.V. - Founder & Editor, VCCircle

9:40am - 10:10am
Keynote Address I: Indian Private Equity Through An Entrepreneur's Lens : How Region's PE Stands To Benefit From Macro Opportunity & Powerful Entrepreneurship
Indians represent possibly one of the most entrepreneurial people in the world today. This combination of opportunity, optimism and entrepreneurship is not only unique but is a powerful force that makes India a highly attractive and distinctive market for private equity investors. It is safe to say that private equity is now an integral feature of India's business landscape. Such growth focus in Indian PE is also apparent in the high rate of job creation and support for smaller companies.

Amul Gabrani - Vice-Chairman & MD, Tecpro Systems Ltd

10:10am - 11:10am
Panel I: Marketing India: How to make India more attractive to LPs
Fundraising as a percentage of GDP is low in emerging markets compared to the US, indicating much more room to grow. Emerging markets had another remarkable twelve months in 2010, delivering growth that exceeded even bullish expectations for a rebound from the global economic crisis. This reinforced an already compelling growth story and convinced many investors that they not only needed to re-examine their emerging markets exposure, but that they also needed to look beyond China and India for alpha. Nonetheless, there is an inherent lag between appetite shifts and actual allocations of capital to new funds. According to EMPEA: fundraising for emerging markets-focused private equity funds remained flat in 2010 at $23.5 B by 185 funds, versus $22.6 B by 167 funds in 2009. Seasoned investors will thus discuss issues like:

- Today’s capital overhang is huge, more capital than opportunities to invest. The dry powder is enough to fund all deal activity at 2010 levels for the next two years. How are LPs reacting to it?
- How attractive is India in the absence of vintage benefits such as low-entry valuations?
- How high valuations and lack of exits are proving to be a spoiler?
- How corporate governance issues and the recent spate of scandals will affect PE investment in India?
- India is home to a lot of "me - too" private equity funds, and many of these funds have similar strategies and fairly generic team profiles. What differentiates?
- What is the common foreign investor perspective on India? Is this accurate, and what is the reality according to those operating in the country?

Kelvin Yap - Vice President, HarbourVest Partners (Moderator)
Achal Ghai - Founder & Managing Partner, Avigo Capital Partners
Praneet Singh - Managing Director, Siguler Guff India
Punit Shah - Partner & Head, Private Equity Tax, KPMG
Rahul Bhasin - Managing Partner, Baring Private Equity Partners India

11:10am - 11:25am
Tea & Networking

11:25am - 12:25pm
Panel II: Fund Raising Myth Busters: First Time Funds Not Too Risky; India Not a Beta Play, Need To Cherrypick Fund Managers
Most emerging markets private equity fund managers places a fairly strong bias on growth markets in Asia, and India certainly represents a very large emerging market and a critical part of their mandate. However, most investment managers don’t pursue India as a beta play, despite the broadly positive macro and demographic trends and tend to cherrypick the fund managers. Thus, the key for PE funds is differentiation through a track record of value creation. This also means that fund managers need to deepen their relationships with promoters to be looked as a partner in building an enterprise than only a source of capital. Also, firms that bring operational expertise to the table will enjoy a clear competitive edge as being actively involved in the operations of their portfolio companies, they strengthen corporate governance, bring rigour to business systems and processes, assist in raising new rounds of capital, provide access to their business networks and help fill critical management roles. Also, there are a lot of first time fund managers on road to be seen. Seasoned institutional investors will discuss:

- The differentiating factor in fund quality is the manager‘s skill set, not 1st time fund risk or a frontier focus.
- How Indian PE now really need walk their talk about creating value and alpha?
- Institutional Vs Non- Institutional. What is the preference?
- Which strategies will deliver better returns in the Indian PE scene?
- Does profit growth or multiple expansions drive value creation?

Praneet Garg - Principal, Asia Alternatives LLC (Moderator)
Nirav Kachalia - Managing Director, Morgan Creek Capital Management
Ajay Relan - Founder & Managing Partner, CX Partners
Sameer Sain - Co-founder & Managing Director, Everstone Capital
Tapan K. Meshram - Sr. Investment Officer, State General Reserve Fund, Ministry of Finance, Oman

12:25pm - 12:45pm
Presentation: Returns from Indian Private Equity - Key Findings From KPMG's Recent Report
Nishesh Dalal - Partner, Transaction Services, KPMG India

12:45pm - 1:45pm
Lunch & Networking

1:45pm - 2:15pm
Keynote Address II: Asian PE Update: India and Beyond
The action is certainly moving eastwards with everyone having their eyes set on Asia. It is also acting as a magnet for international capital. Faced with ever increasing competition for investments and LP attention, Asian GPs must increasingly find niches in the market, and create value for investors at all stages of the private equity value chain. While the period ahead looks bright, it remains to be seen whether current conditions will prove to be a sturdy platform for sustained growth.

Bruno E. Raschle - Chairman, Adveq

2:15pm - 3:15pm
Panel III: India vs China: Which Asian Giant Is A Better Long Term PE Bet
India and China are both vast countries just opening to development, filled with opportunity and risk for private equity investors. Inevitably, the two countries' rising economic fortunes invite debate over which offers the better climate for investment. As the two biggest markets of growth in Asia today, how do China and India compare side-by-side and what are the similarities and differences between Asia’s billion-plus-consumer markets? Experienced PE investors will discuss the following issues specific to China and India.
- China or India : which is the better long term investment bet?
- How India's "soft" attributes, such as a democratic government and a free press that is rooting out corruption, outweighs China's more impressive investments in "hard" infrastructure such ports, plants, and transportation systems.
- What are the risks and benefits of dealing with regional governments?
- Will lion’s share of funds go to China riding on its stellar exits and huge private equity returns?
- Can India's local domestic markets be deep enough as the Chinese RMB markets to become a source of external fund raising?

Jennifer Choi - Vice President, EMPEA (Moderator)
Vincent Huang - Partner, Pantheon
Maninder Saluja - Partner, Quilvest Group
Vikram Bhaskar - MD, Customized Fund Investment Group, Credit Suisse

3:15pm - 3:30pm
Tea & Networking

3:30pm - 4:10pm
GP Runway
GP Runway is a platform for select private equity funds. Runway, aims to put the spotlight on some of the most active private equity funds, while they present their investment strategy & profile to an audience comprising of prominent international and domestic private equity fund managers, limited partners, and also the CEOs/Managing Partners of leading Indian law firms and consultants.

4:10pm - 5:10pm
Panel IV: Tech Venture Capital : Winning strategies for a highly fragmented game; New Exit Tactics, New Sectors, New Channels
There is clearly an upward trend in terms of the dollars, deals and overall excitement about venture investing in India. The recently concluded Makemytrip IPO clearly shows that there is progression and has created a meaningful milestone for India and the overall Indian tech centric venture ecosystem. But compared to the number of deals, and more importantly number of meaningful exits, it’s still in its infancy compared to the much more developed US environment, or even China which has dozens of such success stories. Bottom line: One has to look at India both from a relative as well as absolute angle. From a relative angle, clearly there is progression and excitement that continues to build; however, from an absolute angle, it still pales in comparison with the US or China. But with the funnel developing and virtually every venture firm in the country have a couple of stars in their portfolio, it’s a matter of time (assuming the public markets in India and overseas show strong interest) when we can actually start thinking about the coming of age of the Indian venture capital industry. The forum will bring together the leading VC practitioners in India to discuss and debate:

- What are India’s hottest venture sectors? E-commerce? Cleantech? Web 2.0? What are their growth drivers and the key constraints?
- Examples of value creation strategies
- Risk/return profiles across different deal stages
- Is the VC market too fragmented and over-invested? Will it consolidate in the medium term?
- Technology Exits : Still more of a funnel that actual exits?
- For tech companies, how do IPO opportunities at the Bombay Stock Exchange to prospects elsewhere?

Rebecca Fannin - Author, Startup Asia (Moderator)
Dr. Kiran Rao - Principal, Grove Street Advisors LLC
Sudhir Sethi - Founder, Chairman & MD, IDG Ventures
Kanwal Rekhi - MD, Inventus Capital Partners

5:10pm Onwards
VCCircle Unwind
A zone for informal networking and establishing contacts with LPs and GPs over cocktails

5:20pm - 6:05pm
VCCircle Lounge
One-to-one interaction for GPs with topmost limited partners in a special structured session, VCCircle Lounge. This is session is limited to select 10 LPs and 10 GPs.


Day II, 16th February

9:45am - 10:25am
Keynote Address III: India’s Macro constraints and Growth Prospects
Should we worry about India's short term problems? Is the Indian long term growth story intact? How will inflation and interest rate concerns pan out for companies?

Dr Arvind Virmani, Executive Director (India), International Monetary Fund

10:25am - 11:25am
Fireside Chat: Emergence Of New Models In Indian Private Equity
How are leading Indian private equity GPs evolving their investment strategy in the recent years to identify and execute successful private equity transactions?

Deepak Shahdadpuri - MD, Baer Capital Partners (Moderator)
Shankar Narayanan - MD, Carlyle India
Raj Dugar - Senior MD, Fidelity Growth Partners

11:25am - 11:40am
Tea & Networking

11:40am - 12:40pm
Panel V: Private Equity & Venture Capital Exits In India
What are exit strategies ahead for India fund managers to generate higher returns? How evolved is the dealmaking ecosystem for opportunities in IPOs, M&A, buyback, secondary sale driven exits?

Kutty Dutta - Investment Manager, Coller Capital (Moderator)
Vikram Godse - MD, Mayfield Fund India
GV Ravishankar - MD, Sequoia Capital India
Mukul Gulati - MD, Zephyr Peacock India

12:40pm - 1:40pm
Lunch & Networking

1:40pm - 2:40pm
Session: Domestic Fund Raising: What Is The Road Ahead?
There are several sources in India which Indian GPs can tap into. What are they? Get a lowdown on the domestic fund raising scenario from the experienced GPs, wealth managers, family offices etc. And finally, how sustainable and long term is Indian non-institutional capital?

Gopal Srinviasan - Chairman & MD, TVS Capital (Moderator)
Himanshu Kohli - Partner, Client Associates
Ameet Desai - CEO, Adani Advisory (Adani Group Family Office)
Rahul Vohra - Head, Global Private Clients, ICICI Bank Wealth Managment

2:40 - 3:30pm
Panel VI: Making Most Of The Fast Evolving Secondaries Market
Monetising holdings in private equity can sometimes be straightforward, sometimes more challenging. It depends on the needs and circumstances of each investor. Private equity is an illiquid asset class, with investors required to commit capital to private equity funds for ten years or more and these deals offer LPs an early route to liquidity. Secondary market for private equity is evolving fast in India and seasoned deal makers will discuss:

- Where is the market for second hand LP interests headed in the coming months and years?
- Secondary PE investments are often seen happening at a discount. Is an active secondary market in India seen as a good addition or as a necessity?
- Is boosting liquidity the only reason for investors to sell assets as secondaries?
- How to source, execute and close secondary private equity transactions?

Amit Dabbas - Vice President, Guggenheim Partners (Moderator)
Rohan Ajila - Managing Partner, Capvent India Private Equity
Jason Sambanju - MD, Paul Capital

3:30pm - 3:35pm
Concluding Remarks


Speakers

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Achal Ghai

Founder & Managing Partner, Avigo Capital Partners
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Ajay Kumar Vij

Co-founder & CEO, AsianHealthcare Fund
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Ajay Relan

Managing Partner, CX Partners
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Ameet Desai

CEO, Adani Advisory
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Amit Dabas

Vice President, Guggenheim Partners
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Amul Gabrani

Vice-Chairman & MD, Tecpro Systems Ltd
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Anand Ramachandran Prasanna

Investment Director, Squadron Capital
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Bruno E. Raschle

MD, Adveq Management
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Deepak Shahdadpuri

Founder & MD, DSG Consumer Partner | @DSGCPvc
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Gopal Srinivasan

Chairman & MD, TVS Capital Funds | @TVSCapitalFunds
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GV Ravishankar

MD, Sequoia Capital India
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Himanshu Kohli

Partner, Client Associates
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Jason Sambanju

MD, Paul Capital
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Jennifer Choi

VP, Industry and External Affairs - EMEA
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Kanwal Rekhi

Managing Director, Inventus Capital Partners
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Kelvin Yap

Vice President, HarbourVest Partners (Asia) Limited
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Kiran Rao

Principal, Grove Street Advisors LLC
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Kutty Dutta

Investment Manager, Coller Capital
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Maninder Saluja

Partner, Private Equity, Quilvest
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Mukul Gulati

Managing Director, Zephyr Peacock
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Nirav Kachalia

Managing Director, Morgan Creek Capital
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Nishesh Dalal

Partner, KPMG India Private Limited
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Praneet Garg

Principal, Asia Alternatives LLC
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Praneet Singh

MD, Siguler Guff & Company
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Punit Shah

Partner & Co-Head Tax, KPMG in India
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Rahul Bhasin

Managing Partner, Baring Private Equity Partners (India) Pvt Ltd
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Raj Dugar

Sr. MD, FIL Capital Advisors (India) Pvt. Ltd
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Rebecca Fannin

Author, Startup Asia
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Rohan Ajila

Managing Partner, Capvent India Private Equity
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Sameer Sain

Co-founder and Managing Partner, Everstone Capital
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Shankar Narayanan

Co-Head, Carlyle Asia Growth Partners
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Sudhir Sethi

Founder Chairman & MD, IDG Ventures India
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Tapan K. Meshram

Sr Investment Officer, State General Reserve Fund, Ministry of Finance, Oman
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Vikram Bhaskar

Managing Director, Credit Suisse
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Vikram Godse

Director, Mayfield India Fund
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Vincent Huang

Partner, Pantheon Capital

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Venue :

ITC Sheraton, New Delhi

ITC Sheraton, New Delhi

Distance: District Centre, Saket


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