MUMBAI Feb 20 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