New Delhi: It was a year of keeping the house in order for alternative asset investors, who got more hands-on with portfolio firms and leveraged their cross-functional capabilities and global exposure to help them stay afloat in 2009.
While fresh business proposals gathered dust at the offices of venture capital (VC) funds, existing portfolio firms got undivided attention. Around 66% of the respondents to the Deal Outlook 2010 survey said they were in touch with portfolio firms at least once a week, while 31% said they engaged with them once a month.
This heightened engagement with portfolio firms came in the backdrop of the economic downturn, and troubles at entities such as debt-laden supermarket chain Subhiksha Trading Services Ltd. Several private equity (PE) and VC firms hired executives with experience in various industries to advise their portfolio firms.
Around 38% of the respondents said they were involved in the operations of portfolio firms, while 49% said they were moderately involved. Bringing in operational and financial skills for portfolio firms is becoming important for investors trying to differentiate themselves. Last year was one becoming more hands-on for PE investors. This year will reveal if it worked.
Content from VCCIRCLE