NBFCs seek new funding routes to tide over liquidity crunch
The time is right for private equity funds to invest in NBFCs as valuation expectations have moderated considerably after the IL&FS crisis prompted banks and mutual funds to go into an risk-averse mode
Mumbai: Non-banking finance companies (NBFCs) and home financiers are approaching private equity (PE) funds and overseas debt markets to raise long-term capital because of a liquidity crunch and rising cost of capital in India. Industry watchers say the current situation is opportune for PE funds looking to invest in NBFCs since valuation expectations for the sector as a whole have moderated considerably after the IL&FS crisis prompted banks and mutual funds, two major sources of funding for NBFCs, to go into a risk-averse mode.
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