India

Private Equity 

 

KPMG in India has a premier market position with Private Equity (PE) Firms and is amongst the first in India to create a coordinated multi-disciplinary PE Advisory group that works closely with leading PE investors and their portfolio companies.

Private Equity
Our group mirrors the PE life cycle and provides services to PE houses that range from fund raising and investing to nurturing portfolio companies and exiting. Recently, the firm has been advising first time funds on their fund strategy and investor presentations.

KPMG Contact

KPMG Contact

Vikram Hosangady

Head of Private Equity

+91 44 39145101

The fundamental thesis of PE investments is to nurture a company to build value. Thus managing the performance of existing assets is critical to making successful investments. Resultantly PE houses are likely to need a wider range of skills at their disposal, as opposed to those necessary purely for closing deals. Therefore, the services our clients traditionally expect from us have broadened beyond assisting with sourcing and closing deals and have taken on a longer-term portfolio value creation context. KPMG in India is now taking a leading position in offering a combined approach to assist our clients with their strategic, deal and portfolio management issues.

KPMG offers various services across the private equity lifecycle to PE funds and their portfolio companies.

Service offered during
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Fundraising and Setup

 

Assistance in fund strategy

KPMG has worked with several GP teams on their India fundraising strategy. We can assist with development and articulation of the fund investment strategy and pitch-book including:

  • Sector analysis and deal opportunity
  • Likely value proposition of the fund
  • Due diligence and interviews to build client track record and value-add in past investments
  • Assistance in writing key components of track record

Tax and regulatory services

Knowledge of Tax & Regulation is critical in designing the optimum fund structure. KPMG Tax group offers a range of tax and regulatory advisory services for PE Funds:

 

  • Fund structuring
  • Carry structuring
  • Review of placement documents and investment agreements
  • Tax due diligence
  • Restructuring for tax optimization
  • Tax advisory and compliance

 

Governance, Risk and Compliance Services

Our Model Business Process approach brings together business objectives, process requirements, available infrastructure and people expectations to create a blend of best fit procedures for organizations. During the fund setup stage we can help create the following:

 

  • Investment manual
  • Portfolio management system & procedures

 

Deal Origination and Investment

Corporate Finance Services

KPMG Corporate Finance is industry focused and brings measurable value to a clients drive for growth, competitiveness and profitability. KPMG Corporate Finance provides the following services to private equity firms:

 

  • Deal origination
  • Deal structuring
  • Negotiation support and project management
  • Valuations of funds and investee companies
  • Capital structuring and capital raising advisory services
  • Joint ventures and transaction alliances
  • Valuations and fairness opinions

 

Transaction Services

KPMG's Transaction Services practice offers strong due diligence, structuring and business integration skills. We will assist you in not only completing the transaction but advise you on making the transaction work by factoring in the short term and long term requirements of a successful deal. Our Transaction Services include:

 

  • Pre-deal evaluation
  • Transaction evaluation
  • Business, commercial and operations due diligence
  • Market assessment and business plan related assistance
  • Model development
  • Synergy assessment

 

Forensic

Private equity firms often operate in unfamiliar territories or with little knowledge of the background, reputation or ability to conduct business of their potential business partners. Many times the track record and reputation can be overlooked while focusing only on the potential financial gains. Effective risk assessment is becoming a key issue of concern. To mitigate such risks, firms are seeking professional services to ascertain the reliability of information provided by potential business partners and to find out other relevant details that may not have been disclosed.

KPMG's Corporate Intelligence practice seeks to assist its clients in making informed decisions by identifying any hidden factors or red flags that may impact their businesses. We provide the following services at the pre-transaction stage:

 

  • Corporate intelligence and background checks
  • Environmental due diligence
  • FCPA compliance review

 

Tax and regulatory services

The KPMG Tax group offers a range of tax and regulatory advisory services for PE Funds:

 

  • Tax due diligence
  • Financial model review
  • Inputs on reps and warranties in definitive agreements
  • Transaction and funding structures
  • Regulatory approvals
  • Assistance in court processes
  • Contract / Transaction documentation review
  • Incorporation / Establishment of transacting entities

 

Portfolio Management



Governance, Risk and Compliance Services

India’s economic growth has opened up numerous investment opportunities and serves as a great attraction for private equity investors. In order to optimize returns, enhanced focus on strategic and operational risks is essential for determining the viability of the investment. KPMG provides the following services towards developing a successful investment portfolio and maximizing returns:

 

  • Compliance framework
  • Management information systems
  • High level business risk assessment
  • Revenue Assurance
  • Re-engineering of business operations
  • Corporate governance framework
  • Positive assurance framework
  • Internal audit

 

Business Performance Services

KPMG's Business Performance Services (BPS) practice assists clients in strategy formulation, market-driven feasibility studies, process re-engineering, cost management, operational processes alignment, information systems planning, technology implementation program management, and change enablement. The practice aims to provide clients with integrated solutions to enhance performance through the synergy of strategy, processes, people, and technology. Some of the services that are provided:

 

  • Cost reduction initiatives
  • Target growth strategies
  • Post deal integration
  • Overall sector portfolio management and appraisal
  • Performance management strategy and implementation
  • Ongoing market appraisal

 

Forensic

KPMG's Corporate Intelligence practice offers a number of services for effective risk management to the private equity investor. These include:

 

  • Monitoring investor funds
  • Fraud risk management
  • Investigations in cases of fraud
  • Contract compliance reviews

 

IT Advisory Service

KPMG can offer the following services post successful bid to enhance IT systems and processes:

ERP advisory services

 

  • ERP package and implementation partner selection
  • ERP implementation assistance
  • Project management assistance
  • Process and configuration design and review

 

IT strategy services

 

  • Business alignment
  • Portfolio management
  • IT process improvement
  • IT governance
  • Standards and policy development
  • Architecture and infrastructure
  • Operational process assessments
  • IT governance assessments

 Information security services

 

  • Security management
  • Security architecture
  • Security assessment and testing

 

Tax and regulatory services

The KPMG Tax group offers a range of tax and regulatory advisory services for portfolio companies post transaction:

  • Capital restructuring and reorganization
  • Direct and indirect tax optimization
  • Transfer pricing
  • Tax advisory and compliance

 

Realisation

Corporate Finance Services

Our corporate finance team can help on sale transaction strategies and execution. Our bankers guide our clients through all stages of the sale process. We position the business to maximize interest in the market and develop a broad list of both domestic and foreign strategic and financial buyers. We also assist our clients in analyzing offers, structuring the transaction, and developing the preferred negotiating strategy

Transaction Services

KPMG's Transaction services practice offers Vendor Due Diligence which helps in running an efficient sale process. It simplifies and shortens the sale process and highlights potential issues and opportunities that can be taken into account before starting negotiations with potential buyers. We also provide other assistance in the exit process like setting up of data rooms etc