KKR's Kravis: "really tough" to buy controlling stakes in emerging markets

MUMBAI Thu Feb 20, 2014 2:30am EST

MUMBAI Feb 20 (Reuters) - Global private equity firm KKR & Co LP co-founder Henry Kravis on Thursday said buying controlling stakes in companies is "really tough" in emerging markets, and is particularly hard in India because of the prevalent family-owned business structure.

Private equity firms are increasingly seeking majority-control buyouts in India because economic growth - at its slowest in a decade - and a weak rupee - which fell 11 percent last year - are bringing down corporate profits and so making companies cheaper.

Indian companies, mostly family-owned, have long been averse to selling out, preferring to raise funds by borrowing from banks or going public. But a dormant capital market and high interest rates are pushing them to cut deals with PE firms instead.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.