Exhilway To Partner An PE Firm For Foray Into AIF Space

Top Quote Exhilway plans to drop the idea of going solo in Indian markets, will partner Indian private equity firm. End Quote
  • (1888PressRelease) January 25, 2013 - Exhilway Private Capital Market (EPCM), India's most preferred platform for raising venture capital fund and build pre-IPO market capitalization is in search of an private equity (PE) firm to foray into the new Indian alternative investment fund (AIF) space. Exhilway, originally a US based wealth management entity, will invest US $200 million or close to INR 1100 crore in India via EPCM in the next three years as per the media advisory issued by the management in December last year.

    From the regulatory standpoint Securities & Exchange Board of India (SEBI) has enforced AIF guidelines in the year 2012 putting an end to the old venture capital fund guidelines which was religiously followed for over two decades. The AIF sector, however awaits the clear framework for the free flow of foreign capital in India. The taxation related issues are also left to be addressed by the regulator.

    Exhilway will focus on the inorganic growth by partnering the Indian PE firm which will provide the much required experience to function effectively on the Indian soil. Exhilway will on the other hand will only focus on the product development and the fund raising.

    "The think tank of Exhilway is smart, they understand that they are good at only product engineering and the fund raising. The task of finalizing and managing the portfolio companies is being indirectly outsourced to save on time, energy and money, however for a PE firm this will be an ideal alliance as Exhilway is well experienced to boost valuations of SME companies and perform timely exits," said a person familiar to the development.

    Exhilway which is planning to launch its much awaited US $29 million or INR 160 crore SME VIVO- I will take call early next month whether to go standalone or rope in a PE partner.

    Exhilway also plans to appoint experienced independent directors on board who will guide the management for the planned expansion. The Indian business of Exhilway is valued at US $268 million or INR 1500 crore and the management has not ruled out a possible stake sale or transfer of sweat equity to the proposed PE partner.

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