Harsh Nanda, executive director of Goldman Sachs delivered a talk as part of the speaker series program of PGPX, at IIM Ahmedabad. After providing a background on the history of Goldman Sachs, he explained the various transaction types used by Private Equity firms in financial engineering throughout the world.
Mr.Nanda gave an overview of the Indian Private Equity Industry, and the opportunities and challenges that are inherent in the PE area when seen in the Indian context. He commented that although the Indian PE field is relatively less mature as compared to the developed world, PE firms cannot afford to ignore India because of the recent growth in almost all the sectors. He opined that PE in India will mature as the economy continues to grow and as the regulatory environment changes to promote even more FDI in currently restricted industries. He said that currently the PE firms in India only provide strategic and growth capital to enable entrepreneurs to reach a “critical mass” before they can raise money by going to the stock market. He provided the statistics on the current investment made by PE firms noting that majority of the investment in India are in Energy and Financial services sector. As per Mr.Nanda, the main challenges of PE firms in India are due to its nascent stage, India’s abysmal contract enforcement and regulatory restrictions and also because of the huge dependence on promoters and founders for any firm’s success. However he was optimistic on the future of PE firms in India because of the opportunities available across the spectrum of industrial sectors.
Towards the end of the session he advised the students of the PGPX programme on pragmatic ways to build a career in the Private equity field, especially for those students who do not have experience or background in the Private equity and financial services industry.
Speaker Series is an event where PGPX students interact with top managers, executives and innovators from the corporate world. PGPX at IIM-Ahmedabad is a one year fulltime MBA course, for students with substantial work experience, and was ranked 11th in the world in this year’s Financial Times rankings.