TREND AND PROSPECT OF PRIVATE EQUITY FUND IN ASIA-PACIFIC COUNTRIES: A LESSON FROM INDIA.

Private equity, as an asset class, is probably one of the less well-understood segments of today's financial markets though it is one of the most specialised asset classes. Private equity investments in companies involve considerable risk at an individual company level, and are broadly comparable with other asset classes at the portfolio level. Continuous improvement in savings, abundant liquidity propelled by petrodollars, sovereign wealth funds as well as hedge funds and an accommodative monetary policy that enabled a low interest rate environment accelerated the growth of private equity investment in the world as well as in Asiapacific countries including India. Over the years, Venture capital and private equity (VC/PE) industry made their presence felt in the Indian economy as a conduit to finance young entrepreneurial firms which require substantial capital to drive growth and innovation. This paper is an attempt to explore the trend, progress and prospect of VC/PE industry in India in comparison with the other countries in Asia -pacific region. [ABSTRACT FROM AUTHOR]