Subbu Subramaniam to launch fund

Subbu Subramaniam, who quit Delhi-based private equity firm Baring Private Equity Partners India in August after 11 years, will be launching his own private equity fund in 2010.

Subramaniam, one of the founding partners of Baring India, told sister news site PEI Asia he will begin fundraising next year.

“I’ve not yet decided whether it is going to be on my own or through a joint venture,” he said. “But fundraising is inevitable for me.”

A potential partnership could be struck with a large international private equity player looking to enter the Indian market, he said. Should he choose that route, Subramaniam said he would retain a minority stake in the associated fund managmeent company.

Employment at this point of time is a less-preferred option, in terms of economics and independence of decision-making. Subbu Subramaniam

Subramaniam said it is too early to talk about fund sizes as he is still in negotiations with firms. However, he said that the size of the fund will ultimately be dictated by the amount of capital committed as an anchor investment. He said that anchors normally sponsor up to 10 percent of a fund’s total capital, so “if I get an anchor for $25 million, I’ll raise $250 million”.

He also said he is simultaneously in talks with large pan-Asian offices over the prospects of assuming a senior position and heading their Indian operations, but added that he is not inclined to assume such a role.

“Employment at this point of time is a less-preferred option, in terms of economics and independence of decision-making,” he said.

According to Indian media reports, Subramaniam quit Baring India over differences with Rahul Bhasin, managing partner of the firm. There were professional differences between the two owners, two anonymous executives at Baring India told the Economic Times. These differences soon turned into personal differences, the sources told the Indian daily.

Baring India managing partner Rahul Bhasin told PEI Asia previously that a series of recent staff resignations were linked to employees' unhappines over the firm's move towards a more institutional operating model.