Mumbai...
As life becomes progressively more hectic, blogging has taken a back seat. I hope to write more often once I am back in Hanover in early January.
For the last month, I have been in Mumbai. I continue to intern at the private equity firm where I worked for part of my summer. The pace of activity in the industry has definitely quickened. New firms are popping up everywhere. Valuations are beginning to appear stretched.
I believe that a lot of money that was to be made from multiple expansion has disappeared thanks to the valuations. So, it will take a lot more effort than in the past to achieve an IRR of 20% plus. Many say that a 20% plus IRR is being greedy especially with long rates continuing to remain low. India continues to be an emerging market and the attendant risks need compensation.
Real estate in India is a very exciting market to be in. As action shifts to tier II cities, many more people can thank real estate for their wealth. The legal risk in the industry is probably second to none. Anybody watching the Mumbai mill land development saga will vouch for that. I would love to work in the industry at some point in the future.
During this visit to India, I also spent some time in Ahmedabad and Kolkata (visiting the business school festivals of the IIMs) and squeezed in visits to Bangalore and Delhi. Some India trip this has been :-D
posted by Tagad_Tale @ 1:30 AM
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