BlackRock and Hemendra Kothari's DSP Group to set up PE fund targeted at mid-sized cos

The world's largest asset management firm, BlackRock, will join hands with Hemendra Kothari's DSP Group to set up a private equity fund to do 'classic PE deals' targetted at mid-sized companies. People close to the situation said DSP and the US-based BlackRock, which run a joint venture asset management company, are discussing the formation of a separate firm to run the new business. The partners have already formed a team and have begun identifying top executives to be hired as operating and deal partners. Two chief operating officers, armed with long experience in managing companies, will be hired as operating partners. Top executives, with knowledge of different industries, will also join the new team, according to a person familiar with the discussions. "It will not only be buyouts but also minority growth capital, but in no case a less than substantial stake. A classic PE style will be employed," the person said. "There is a strong belief in India that PE investments are meant for start-ups. Mid-sized companies offer a greater opportunity."

Source: Economic Times