- Nuvama Private Equity, a part of Nuvama Asset Management manages ~$1bn AUM
- Gujarat’s real GDP has grown at a rate of 10% CAGR rom 2014-2022, much higher than India’s GDP growth during the same period: Pranav Parikh, Managing Partner, Nuvama Private Equity
- Gujarat stands at the 5th rank in terms of number of startups recognised and the state has registered 83% growth in startups from 2020 to 2022
NE BUSINESS BUREAU
AHMEDABAD, NOV 24
Nuvama PE, the private equity arm of Nuvama Asset Management and one of the leading alternative asset managers in India, has announced, on Friday, its intention to explore Gujarat as a strategic market. This in line with its vision of ‘Indians for India’ which aims to leverage the entrepreneurial ecosystem in India, especially vibrant entrepreneurial hubs like Gujarat, to drive business growth and at the same time provide Indian investors access to high quality businesses which have a significant growth runway in the decades to come.
Speaking on the occasion, Pranav Parikh, Managing Partner, Nuvama Private Equity, said, “As India’s growth journey accelerates towards a $10 trillion economy over the next decade and a half, we expect large global and local companies to emerge in India. Traditionally the focus of private equity has been on the key metros but we believe that a combination of strong entrepreneurial spirit, development focused state government and appropriate risk capital will see a surge in high growth companies scale up in Gujarat for India and for the world. Gujarat’s real GDP has grown at a rate of 10% CAGR rom 2014-2022, much higher than India’s GDP growth during the same period.”
“Additionally, Gujarat has attracted significant FDI inflows worth approximately $32 billion between October 2019 and March 2023..According to data shared by the Department for promotion of industry and internal trade (DPIIT), Gujarat stands at the 5th rank in terms of number of startups recognised and the state has registered 83% growth in startups from 2020 to 2022. However, the accessibility of private equity funding opportunities remains limited in the state,” Parikh added.
Parikh further said, “Thus, our focus on Gujarat as a state for deploying PE capital in firms which have a potential for significant growth through our theme ‘Indians for India’. The prevailing view of many Indian entrepreneurs has always been that PE players are only a provider of capital and don’t take interest in helping the founders to leverage their ecosystem. However, since our inception it has been our endeavour to partner with entrepreneurs throughout their lifecycle to achieve scale, either through our late-stage PE series of funds for firms heading towards IPO or via our venture debt fund that allow capital raising without excessive dilution of stakes.”
He further added “Our goal is three-fold: one, to ensure that the founders or promoters can fulfil their dreams through capital raise at various juncture of their journey; two, being able to leverage our expertise and ecosystem for expansion and increasing operational efficiency to achieve overall profitability. And three, provide access to high quality businesses to our esteemed clientele. It is important to understand the role of private equity in professionalizing businesses, ensuring sustainability, and making a significant difference through formal capital. This perspective aligns with the growing entrepreneurial culture in Gujarat and the increasing business potential as India approaches the milestone of becoming a 5trillion-dollar economy in the short term.”
Nuvama PE, currently invests in growth equity primarily through its Late-stage PE series of funds known as Nuvama Crossover Opportunities Funds and, in early stage (Series A onwards) through its venture debt fund known as Nuvama Crossover Yield Opportunities fund. The company currently manages ~$1billionin AUM through a unique rationale basis a proprietary research and analysis model conducted by Nuvama PE.
Publicly available data as of 30th September 2022 for NSE AIF benchmarking shows that the successfully closed maiden fund of the late-stage growth equity-focused Crossover strategy, Edelweiss Crossover Opportunities Fund I managed by Pranav Parikh has returned a XIRR of 19.31%, one of the only funds to exit from the 2018 vintage. Additionally, the ongoing Edelweiss Crossover Opportunities Fund II is currently providing a XIRR of ~26.32%, placing it as one of the top performers in the industry in terms of returns and distributed capital.
