Archive · 3 Jun 2025
BofA: Private Equity Exits in India Show Market Maturity
Imagine companies that invest in other companies.
They usually buy, hold, and then sell their investments.
Peter Guenthardt from BofA Securities says that these sales in India are normal, not a sign of trouble.
Companies are just returning money to their investors, it's how they work.
More money is coming into India from these investors than is leaving.
Some big companies are leaving certain markets in India because local companies are too competitive.
There is also a strong expectation for more companies in India to list their shares on the stock market.
It is expected that India will have significant growth in the coming years.
Peter Guenthardt of BofA Securities says private equity exits in India reflect a natural cycle, not weakness.
He explains private equity firms invest, hold for 3-5 years, then return capital to investors.
Allocation towards India in newer funds has increased, with more money coming into the country than leaving.
MNCs are exiting sectors where they face stiff local competition, like cement and renewable energy.
Guenthardt anticipates a strong M&A market and expects more MNCs to list their Indian subsidiaries.
- Who
- Peter Guenthardt from BofA Securities
- What
- Private equity exits in India are driven by fund cycles and portfolio management
- When
- Recent months
- Where
- India
- Why
- Private equity investors are recycling capital through investments.
- Peter Guenthardt's Role
- Asia Pacific GCIB
- Guenthardt's Employer
- BofA Securities
- Typical investment hold time
- 3 to 5 years
- Allocation to India in newer funds
- 30-35%
- Sectors with MNC exits
- Cement, renewable energy
- Companies expected to list
- B2C businesses