RT Journal Article SR Electronic T1 Private Equity Investment in Infrastructure:
Evidence from India JF The Journal of Private Equity FD Institutional Investor Journals SP 40 OP 47 DO 10.3905/jpe.2014.17.4.040 VO 17 IS 4 A1 A. Thillairajan A1 Srikant Menon YR 2014 UL https://pm-research.com/content/17/4/40.abstract AB There has been rapid growth in private equity (PE) investment in infrastructure over the last decade. This article is an analysis of PE funding in infrastructure based on data from Indian projects. Data from 335 infrastructure projects with PE investment and 370 projects with no PE investment have been used in the analysis. The average investment in projects made by foreign PE investors was higher than that of domestic PE investors. The average investment made by a mix of domestic and foreign investors was significantly higher than the average investment sizes of a group of either the domestic or foreign investors, suggesting that the presence of domestic investors increased the comfort level for foreign investors to enter the market. The main motivation for syndication was to pool capital from different investors. The overall characteristics of the operating environment also play an important role in attracting PE investment. States that had higher values of PPP and Property Right Indices and lower corruption levels attracted PE investment in more projects. Comparing the state level characteristics of projects with and without PE investment showed that PE investors are prepared to invest in riskier environments than other investors.TOPICS: Private equity, emerging, other real assets, statistical methods