Warburg Pincus Raises A $1.2 Billion Global Real Estate Fund

Private equity firm Warburg Pincus has raised a $1.2 billion global real estate fund. The fund will be called Warburg Pincus Real Estate I, L.P. and will invest in real estate opportunities worldwide. So we can expect some investments in India too.

The fund has investors like state pension funds, and college endowments. New York-based Warburg Pincus is currently investing out of an $8 billion private equity fund it raised in 2005. Warburg's past and current real estate related investments include: Chelsea Property Group, Grubb & Ellis, Grupo Pinar, Guangzhou R&F Properties, Lennar Corp.

Warburg Pincus began as E.M. Warburg & Co., an investment banking and private investment counseling firm founded in 1939 by Eric Warburg. In 1966, the firm joined with Lionel Pincus & Co., a venture capital, investment and financial consulting firm.

Read Press Release Here

Source: VCCircle/Reuters

NYSE may pick up 26% in BSE

BSE is reportedly in talks with New York Stock Exchange (NYSE) for roping in the latter as a partner in the country's leading stock exchange.

The move could lead to a sharp rise in listed companies in India and a better access to modern trading processes. According to sources close to the negotiations, a team from NYSE was recently in the city for talks with the BSE top brass. The meeting took place after the BSE held its first annual general meeting on September 26.

The exchange has appointed Kotak Mahindra as financial advisor for the strategic sale.
As part of the demutualisation (corporatisation) programme, BSE plans to bring down member brokers’ equity stake from the current 100 per cent to 49 per cent, by selling 26 per cent to a strategic partner. The exchange also plans to sell another 25 per cent to the public through an initial public offering.

The BSE earned a net profit of Rs 93 crore on a total income of Rs 220 crore in the year ended March ’06. On a small equity of Rs 68 lakh (representing as many shares of Re 1 each), the earning per share (EPS) works out to Rs 137. Even at a conservative discounting rate of 10 times, against sensex’s current price earning of 21, BSE shares could be valued at Rs 1,300-1,400.

WL Ross Makes First India Investment with Acquisition of OCM

WL Ross & Co. LLC ("WL Ross"), global private equity investor in corporate restructurings enters India with the acquisition of OCM India Limited ("OCM") for $37 million in cash (Rs. 170 crores).

The acquisition of OCM is being made pursuant to a Scheme of Arrangement between Birla VXL Limited (Bombay Stock Exchange: VXL IN) and its existing lenders, creditors and shareholders and OCM and its shareholders and being carried out through The Asset Reconstruction Company of India ("Arcil"). Mr. Sudhamoy Khasnobis, Managing Director & CEO of Arcil stated "the OCM acquisition is the first 100% buyout of a major Indian enterprise by a global turnaround fund."

WL Ross has sponsored over $4.5 billion (Rs. 20,000 crores) of alternative investments since its founding in 2000. WL Ross' notable principal transactions include rolling up five bankrupt US steel companies into the International Steel Group, which was sold in 2005 to Mittal Steel for $4.5 billion. Mr. Ross is a member of the board of directors at Arcelor Mittal. WL Ross opened its India office in Mumbai five months ago.