New York-based Aleutian Capital Partners Llc., a mid-sized leveraged buyouts and investment banking firm, is setting up base in India riding the second wave of American private equity firms coming here.
The firm has an increasing focus on Southeast Asia and India, and their first India office will be in New Delhi. Aleutian Capital Partners stands out from the private equity firm giants such as Providence Equity Partners Llc. and Apax Partnersthat have come to India in the last nine months, because it acquires smaller companies globally. But there is one theme across all of the half-dozen private equity firms settling in India now: an interest in buyouts.
While only a handful of buyouts have taken place in India, including the 80% stake that The Blackstone Group recently took in business process outsourcing company Intelenet Global Services Pvt. Ltd and the acquisition of Flextronics Software Systems Ltd by Kohlberg Kravis Roberts & Co. last year, many private equity investors domestic and abroad see India as a slowly ripening market for buyouts.
Aleutian Capital Partners says it invests in and acquires private companies in North America from its offices in New York’s Empire State Building. It seeks non-commodity manufacturing, B2B services and distribution companies, such as the youth retail web site they invested in - Karmaloop, Llc. They say their sweet spot for acquisitions is companies with revenues between $10 million (Rs40.6 crore) and $200 million (Rs812 crore) in sectors such as healthcare services and medical device manufacturing, aerospace and defence, energy services, industrial equipment manufacturing, and logistics and transportation.
The firm also specializes in the information technology sector - both products and services, which has attracted investors to India.
Rishav Gupta, senior vice-president, leads the firm’s IT investments, which include growth and buyout deals in companies with revenues between $5 million and $150 million. Aleutian Capital Partners officials, who has started the process for hiring a team here, were not available for comment.