Goldman Sachs, the US based investment banking firm is planning to invest about 1 billion dollars in India throughout the following three to four years through its private equity business. The private value arm of US investment banking firm Goldman Sachs is in the last phase of finalizing two platform investment deals in India. “We are currently in the final stages of reviewing two more platform deals, one in the financial services sector and one in a quasi-real estate space,” Ankur Sahu, co-head of merchant banking division (Asia-Pacific) at Goldman Sachs said.
As a major aspect of its India system, the organization additionally has arrangements to begin its own investment banking and securities business in India and the objective is to contribute $200-300 million a year. “We think the India opportunity is big and we plan to invest a fair bit of capital. The goal is to invest 200 to 300 million dollars a year, potentially it will come close to a billion dollars in the next three to four years,” said Sahu.
The organization is primarily hoping to put resources into small business in a strategy known as platform builds. This includes setting up a business with help from an expert entrepreneurial group or purchasing majority stake in budding businesses and pooling in a group of experts to develop and scale up the business. The investment bank initially executed this in India through ReNew Power Ventures Pvt. Ltd.
This approach is not the same as when Goldman Sachs initially started operations in India through investments in firmly established and settled organizations, for example, Mahindra and Mahindra Limited and Max India.
Prior to this the investment arm of Goldman Sachs has also put resources into a few firms in India including into ReNew Power Ventures, Tejas Networks, BPL Medical Technologies Ltd, Nova Medical Centers, Tikona Digital Networks and Essel Highways.
Goldman has also operations in Asia Pacific countries like Australia, New Zealand, Japan, Hong Kong, Singapore, Taiwan, Korea, China and Thailand.
May 31, 2017