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Showing posts from 2019

Hedge Funds are losing out to Private Equity

An article by Institutional Investor covers an EY's 2019 Global Alternative Fund Survey on institutional investors moving allocation from Hedge Funds to Private Equity. Snapshots from the article are below: In 2019, hedge funds made up 33 percent of institutional investors’ allocations to alternatives. That’s a 7 percentage point drop from 2018, according to EY’s 2019 global alternative fund survey released Wednesday. Private equity was the big winner, growing to 25 percent of investors’ alternatives bet from 18 percent the year before, EY reported. Alternatives as a whole made up a quarter of investors’ portfolios, up slightly from 24 percent last year.We’ve seen that hedge fund offerings have been challenged on a number of fronts. Your long-only and long-short equity managers are continuing to face pressure from ETFs and institutional investors that can do that on their own, Ryan Munson, a partner in EY’s asset and wealth management practice and an author of the report, said in …

Considering Litigation in India | Part II: Legal Capsule by Veyrah Law

Considering Litigation in India | Part II - Know yourself and your opponent before picking a fight! This article is in continuation of the earlier article where we outlined the challenges associated with pursuing a litigation in India. As highlighted in our earlier article, litigating in India can be a time consuming and relatively expensive affair. Anyone planning to engage in commercial litigation in India should utilize litigation only as a means to achieve a desired settlement. In this context, one should be mindful of certain factors that may determine the strategy to achieve the desired settlement. These become more relevant for mid-market businesses, given the constraints on capital and man-power at their disposal. Some important aspects for anyone to consider before engaging in a litigation are as follows: What is your capacity to litigate? Understanding one’s capability and exploring options accordingly may seem to be a simple and logical approach. But, this is rarely ever se…

Shardul Amarchand Mangaldas tops League Table for Legal Advisors to M&A deals in Jan - Sep 2019

Shardul Amarchand Mangaldas (SAM) topped the Venture Intelligence League Table for Legal Advisors to M&A Transactions in Jan - Sep 2019 advising deals worth $13.9 Billion (across 35 qualifying deals). AZB & Partners ($11.3 Billion across 41 deals) and Cyril Amarchand Mangaldas (CAM) ($11.0 Billion across 30 deals) took the second and third spot respectively. L&L Partners ($9.2 Billion across 21 deals) and Khaitan & Co. ($8.0 Billion across 65 deals) completed the top five.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
SAM and AZB advised the GRUH Finance - Bandhan Bank merger and Brookfield's buyout of Pipeline Infrastructure from Reliance Industries. L&L Partners and SAM advised Bhushan Power and Steel takeover by JSW Steel. CAM, JSA and L&L Partners acted as legal advisors t…

AZB & Partners tops League Table for Legal Advisors to Private Equity deals in Jan - Sep 2019

AZB & Partners topped the Venture Intelligence League Table for Legal Advisors to Private Equity Transactions in Jan - Sep 2019 advising deals worth $13 Billion (across 71 qualifying deals). Cyril Amarchand Mangaldas (CAM) ($8.3 Billion across 49 deals) and Shardul Amarchand Mangaldas (SAM) ($7.1 Billion across 47 deals) took the second and third spot respectively. Khaitan & Co. ($4.1 Billion across 54 deals) and Trilegal ($3.5 Billion across 26 deals) completed the top five.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
AZB and CAM advised Brookfield's $3.7 Billion acquisition of Reliance Tower Infrastructure Trust. AZB and SAM advised Brookfield's $1.9 Billion buyout of Pipeline Infrastructure from Reliance Industries. AZB and CAM advised Carlyle's $678 million investment in SBI Lif…

Arpwood tops League Table for Financial Advisors to M&A deals in Jan - Sep 2019

Arpwood Capital topped the Venture Intelligence League Table for Financial Advisors to M&A Deals for Jan - Sep 2019, advising M&A deals worth $4.1 Billion (across 5 qualifying deals). Ambit Corporate Finance ($3.4 Billion across 5 deals) and Deloitte ($2.9 Billion across 9 deals) took the second and third spot respectively. Ernst & Young ($2.8 Billion across 10 deals) and KPMG ($2.2 Billion across 8 deals) completed the top five.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
The largest deal advised by Arpwood Capital was the merger betweenGRUH Finance and Bandhan Bank worth $3 Billion. Ambit Corporate Finance advised Brookfield's $1.9 Billion buyout of Pipeline Infrastructure from Reliance Industries. Deloitte advised the acquisition of Rural Electrification Corporation by Power Financ…

Potential Direct Tax Implications for Digital Economy

Legal Capsule by LexCounsel
Multinational companies such as Google, Facebook, Airbnb etc., engaged in providing digital services in different countries, without any physical presence, are likely to be adversely impacted by the changing international tax regime. The tax challenges arising from digitalisation of the economy were identified as one of the main areas of focus of the Base Erosion and Profit Sharing (BEPS) Action Plan, leading to the 2015 BEPS Action 1 Report on ‘Addressing the Tax Challenges of the Digital Economy’. Thereafter, the focus of the countries has been to draw up a conclusive plan for the governments’ right to tax multinationals, through the Organisation for Economic Cooperation and Development (OECD), which is currently working on releasing a methodology for such taxation, by 2020.
OECD has prepared a proposed “Unified Approach”, designed to address the tax challenges arising from digitalisation of the economy and to grant new taxing rights to the countries wher…

Ambit retains the top spot for Financial Advisors to Private Equity deals in Jan - Sep 2019

Ambit Corporate Finance topped the Venture Intelligence League Table for Financial Advisors to Private Equity Transactions for Jan - Sep 2019. Ambit advised PE deals worth $2.4 Billion (across 4 qualifying deals) during the period. Ernst & Young ($665 million across 4 deals) and KPMG ($604 million across 4 deals) took the second and third spot. Edelweiss Financial Services ($589 million across 4 deals) and PwC ($575 million worth 4 deals) completed the top five in 9M 2019.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Financial and Legal Advisory firms.
Ambit Corporate Finance advised Brookfield's $1.9 Billion buyout of Pipeline Infrastructure from Reliance Industries. Ernst & Young and Edelweiss Financial Services advised KKR and GIC's investment in Sterlite Group owned India Grid Trust. KPMG and PwC advised Blackstone’s $…

Legal Capsule by Economic Laws Practice

Global trade wars: An opportunity for India to implement long term reforms
Authors: Sanjay Notani, Parthasarathi Jha

While the United States-China trade war has dominated the debate on global trade order and its future, there has been a silent and calibrated attack on India’s domestic policies at the WTO in recent years by several countries (such as the United States, Canada, Australia and Brazil). These countries have been questioning some of India’s export promotion schemes and domestic support measures for agricultural products such as rice, wheat, cotton, pulse and sugarcane and sugar before the WTO Committee on Agriculture (COA).


WHAT ARE THE KEY ISSUES?
In the ongoing dispute DS 541 (India – Export Related Measures), the United States has challenged certain key export promotion schemes including Export Oriented Units (EOU scheme), Merchandise Exports from India Scheme (MEIS), Export Promotion Capital Goods Scheme (EPCG) and Special Economic Zones scheme (SEZ) that offer tax incentiv…

Legal Capsule by Economic Laws Practice

Private equity – Shareholders’ rights and areas of potential disputes
Authors: Shyam Pandya, Shailesh Poria, Aasim Syed, Rashmi Ramnath

INTRODUCTION
Keeping pace with the evolution of private equity (PE) investments as a mainstream source of funding, there has been a commensurate increase in differences and conflicts with investee companies, promoters and other stakeholders. Such disagreements arise on multiple grounds, ranging from corporate governance, contractual rights & obligations, board nomination and investor exit amongst others. Many of these provisions are documented in a shareholders’ agreement (SHA) or an investment agreement. This article focuses on the key contractual legal rights and obligations in SHAs that engender disputes between PE investors and promoters as well as the effective mitigation, response and resolution strategies.
CONTRACTUAL RIGHTS AND OBLIGATIONS PE Investors and the promoters typically negotiate their legal rights and obligations in relation to the…

Private Equity Firms invest $10.1 B in Q3 2019; Takes 2019-9M to $26.5 B

Press Release
Private Equity and Venture Capital firms invested $10.1 Billion(across 167 deals) during the quarter ended September 2019, according to data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The investment value was boosted by Brookfield's $3.7 Billion investment in Reliance Tower Infrastructure Trust. The investment value increased 6% compared to the $9.5 Billion (across 218 transactions) recorded in the same period in 2018 and 62% higher than the immediate previous quarter (which had witnessed $6.2 Billion being invested across 211 transactions). (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate).
Including investments in the latest quarter, 2019 has recorded $26.5 Billion (across 583 investments) compared to $27.3 Billion (across 644 investments) in the same period in 2018.
The latest quarter witnessed 19 PE investments worth $100 million or more…

Legal Capsule by Economic Laws Practice

India Inc & TREATY ARBITRATIONS
Author: Abhileen Chaturvedi
India executed its first bilateral investment treaty (BIT) in 1994 with the United Kingdom. The subsequent years witnessed a proliferation of BITs with several nations on account of the ‘liberalization wave’ that swept the country in the 90’s. Simply put, BITs were a bundle of protections that India promised to a foreign investor and which would have been extended to an Indian investment, in the counterparty’s country as well. However, given the intense inbound capital focus characteristic during the early liberalization period, these treaties acted more to provide a sense of security to a foreign investor coming into India as opposed to the other way around.
More than two decades down the line, India remains one of the more popular FDI destinations around the globe; however, outward FDI from India has also increased exponentially. Consequently, the BIT paradigm has changed as well-and-must now ensure that Indian investmen…

Legal Capsule by Economic Laws Practice

Legal metrology laws in India – Issues and challenges Authors: Stella Joseph, Sweta Rajan, Prakhil Mishra, Suhasini Joshi
INTRODUCTION
The Legal Metrology Act, 2009 (LMA) and Legal Metrology (Packaged Commodities) Rules, 2011 (PCR) are the primary instruments available to the Government for protecting consumer interest and ensuring consumer awareness. LMA and PCR prescribe the mandatory declarations required to be made on retail packages, including details such as Maximum Retail Price (MRP), name and address of the manufacturer, packer and importer, contents and size of the commodity, month and year in which the commodity is packed or imported, contact details in case of consumer complaints etc.
Manufacturers, packers and importers are accordingly required to obtain registrations under the LMA. This article analyzes the recent amendments to LMA by the government, impediments faced by the industry, cost of non-compliance (especially in light of the recent increase in traction from Legal …