With total assets under management of $4.32 trillion, and over 7700 managed portfolios, U.S.-based BlackRock has investments in over 100 countries and offices in 30 countries, including India.
In India, DSP BlackRock is a leading mutual funds investment company. The DSP BlackRock India T.I.G.E.R. Fund is designed to buy stocks that benefit most from growth-boosting policies. The fund has returned 58.8% over the last year—as of October 27, 2014—and about 28% in the last six months. The fund’s top holdings at the end of September included State Bank of India, Larsen and Toubro Ltd, and ICICI Bank.
What BlackRock has to offer
At the breakfast meeting with Indian Prime Minister Narendra Modi, BlackRock’s CEO, Laurence Fink, expressed his keen interest in expanding business with India. In response to Modi’s call for investments, Fink offered to host a global investors meeting in India in early 2015.
KKR & Co. L.P. (or KKR) is an American multinational private equity firm specializing in leveraged buyouts. KKR is operated by its managing partners, Henry Kravis and George R. Roberts, and a team of approximately 140 investment professionals and 400 total employees, organized into industry-specific groups.
In India, KKR has a non-banking financial arm called KKR India Financial Services. Under its umbrella, there are three pools of $200 million each that offer high-cost structured debt to Indian promoters, corporations, and real estate developers seeking liquidity options.
When Modi met Henry
Modi sought continued investments from Henry Kravis, CEO of KKR. Over the recent past, KKR has pumped about 6.3 billion Indian rupees into Gautam Thapar-owned Avantha Holdings. Last October, KKR invested about 5.5 billion Indian rupees in PCR Investments, the holding company of Apollo Hospitals. Pure-play private equity operations remain a key segment for the fund in India, having put in $1.6 billion since 2006.
Modi’s government in India expects firms such as BlackRock and KKR to invest in India’s growth. Given that these seasoned investors are interested, investors in emerging market equities such as the Vanguard FTSE Emerging Markets ETF (VWO) and the iShares MSCI Emerging Markets Index Fund (EEM) might also consider investing in India-focused exchange-traded funds (or ETFs), such as the WisdomTree India Earnings Fund (EPI), the PowerShares India Portfolio (PIN), and the iShares MSCI India ETF (INDA)—and becoming part of India’s growth story.
The last part of this series sheds more light on why India could be a part of your long-term investment portfolio.