DIC looks to invest in India

Dubai International Capital remains bullish on opportunities in the emerging markets despite the effects of current market troubles, its COO Anand Krishnan said at the recently concluded Private Equity International India Forum in Mumbai.

Middle East investment firm Dubai International Capital will agree several Indian deals in the next six months, according to Anand Krishnan, the firm’s chief operating officer.

Speaking at the Private Equity International India Forum 2008, which concluded in India last week, Krishnan said that the firm is also looking to set up an Indian unit for one of its portfolio companies active in the oil and gas services sector.

There is no decoupling, everything is coupled.

Anand Krishnan

DIC is bullish on the emerging markets, though Krishnan added that talk about the “decoupling theory” is unfounded.

While there are great opportunities in China, India and the Middle East, or “CHIME” as he called it, he said that markets in these regions were also adversely affected by the financial turbulence in Europe and the US. “There is no decoupling… everything is coupled,” he said.

The paucity of debt in the current market environment has made deals larger than $1 billion impossible to agree, and has also dampened exits as potential buyers are not in a position to avail of debt for their purchases either, Krishnan said.

Earlier this week, DIC hired Alykhan Nathoo from Bain Capital as chief executive officer of DIC Emerging Markets. It also hired hired Eric Kump and Marc Hollander as managing director and finance director, respectively, for DIC Private Equity.

The firm has rapidly been expanding its team, which has grown from 30 people to 70 over the last year and now manages assets in excess of $13 billion. DIC’s emerging markets division, which is focused on investments in MENA, Eastern Europe, Latin America and Asia, expects to have $5 billion in capital under management within the next three years.