Blackstone India’s senior MD Amit Jain to step down2 min read . Updated: 23 Nov 2020, 07:25 AM IST
- He is set to quit ahead of the US private equity giant’s $5 billion Asia fund in 2021
- Jain does not want to commit to the firm’s second fund, said a person aware of the development
Blackstone India senior managing director Amit Jain is set to quit ahead of the launch of US private equity giant’s $5-billion Asia fund in 2021, two people aware of the development said, requesting anonymity.
Blackstone is one of the biggest private equity (PE) investors in India. “Jain does not want to commit to the company’s second fund that is scheduled to be launched in early 2021," said the first person. Jain is yet to formally put in his papers.
Under Blackstone’s policies, the head of a business vertical is required to stay with the company until a fund is fully utilized.
Jain was promoted as a senior managing director at Blackstone India in January. He is likely to join rival PE firm Carlyle’s India unit as the co-head of Carlyle, India, they added. A Blackstone spokesperson declined to comment, while Carlyle and Jain did not answer a query from Mint.
“Blackstone is raising Asia fund-II that requires a 10-year commitment. Jain did not want to commit to that and he leaves after Asia fund-I is deployed," said the first person, who is directly familiar with Blackstone’s processes.
In October, Blackstone had internally announced the launch of Blackstone Capital Partners (BCP) Asia 2 with a corpus of $5 billion, which is double the size of the first Asia fund, BCP Asia 1, which was raised in 2017.
“Jain will leave the firm after fund 1 is fully deployed. He is required to serve at least till December-end of 2021," said the second person.
Blackstone has garnered returns of 38% in its global portfolio and about 85% in its India portfolio, he added.
The private equity firm is currently in discussions to acquire a couple of large businesses in India such as Piramal Glass and L&T Finance’s mutual fund business.
“Blackstone is in an exclusive discussion with L&T for investing in the latter’s asset management business, which is expected to conclude by the end of this fiscal year," said the first person.
If and when the deals with L&T mutual fund and Piramal Glass are completed, the entire amount in the first fund will be exhausted, he added. Its proposed $950 million buyout of Piramal Glass is yet to be finalized.
Within its existing portfolio, Blackstone invested an additional $70 million in Mphasis, an IT services firm, in April, taking the shareholding in the company to 56.21%. It had invested an additional $75 million in Aadhar Housing Finance in June.
This year, Blackstone sold a 23% stake in packaging firm Essel Propack Ltd for $252 million, besides selling a $300 million stake in Embassy Office Parks Reit, and a small stake in Mindspace Business Parks Reit during its initial public offering in July.