Blackstone Inc. aims to build a $25 billion portfolio of Indian private equity assets within the next five years, highlighting the growing appeal of the South Asian nation to international investors. The firm, headquartered in New York, also plans to expand its asset management team in India by hiring 20 investment professionals and to increase its office space in Nariman Point, located in downtown Mumbai, as stated by Amit Dixit, the head of private equity in Asia. “India’s predictable regulatory and policy environment, steady economic growth and buoyant capital market offer the right opportunity to speed up creating such a large portfolio”, Dixit said in an interview.
Major international corporations, pension funds, and sovereign wealth funds are investing billions of dollars in the world's most populous country. Despite numerous challenges in a nation with a significant portion of its population living in poverty, the potential for growth is evident. Blackstone currently holds approximately $50 billion worth of private equity and real estate assets in India, with the country yielding the highest returns on private equity investments for the firm, as stated by its president during an event last year.
Dixit mentioned that Blackstone intends to construct a portfolio focusing on three main themes: digital infrastructure such as data centers, energy transition encompassing renewables, and critical segments of transportation such as airports, roads, and ports. Additionally, Blackstone will explore investment opportunities in export sectors and electronic manufacturing, representing a relatively novel domain for Indian industry.
The firm has already invested in information technology services, electric-vehicle components, financial services, hospital chains, and other areas before making exits. “It’s in our DNA to be a builder of businesses, not just a buyer,” Dixit said. “In the context of India, it is all about growth”.
The country’s buoyant stock market provides opportunities for funds to exit, though it is hard to say how the depreciating rupee will have an impact, Dixit said, adding, “We’ll factor that in. This amount of liquidity and this amount of debt in the market previously did not exist”, he said. “Our investors, they recognize the power of India”.