KKR's Kravis: 'really tough' to buy controlling stakes in emerging markets
MUMBAI (Reuters) - Global private equity firm KKR & Co LP (KKR.N) 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.
(Reporting by Sumeet Chatterjee; Editing by Christopher Cushing)
- Malaysia Airlines plane missing, presumed crashed in South China Sea |
- China draws 'red line' on North Korea, says won't allow war on peninsula
- Malaysian plane crashed off Vietnam coast: state media
- No signal picked up from missing Malaysia Airlines plane-Vietnam official