Financial Services
From Amazon to Westbridge, PE firms bet on insurance due to stable rules
14 Jun 2018
The last few months have seen a spurt in private equity deals in the insurance space, with investors like Westbridge Capital and Warburg Pincus buying stakes in Star Health & Allied Insurance and India First Life, respectively (see box). There have been other deals too.
The deals are driven by a new regulation in December 2017, which allowed PE firms to come in as promoters in insurance firms and exit after a lock-in period of five years. This was matched by few foreign partners, who were keen to sell their stake in their Indian ventures.
“PE investors are looking to invest in sectors that have a strong underlying growth story, a high degree of regulatory certainty and improving economics, among other things,’’ says Madhur Singhal, managing director of PE advisory firm Praxis Global Alliance.
Featured Leader: Madhur Singhal
This article was originally published on Business Standard. Read more.
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