Global equity investment and advisory firm Blackstone has said it was open to come up with an India dedicated fund for infusing capital into corporates depending on response to its initial $1 billion investment.
"The $1 billion is only a beginning. If deal flow is encouraging, we should be raising India dedicated funds," Blackstone managing director Akhil Gupta told PTI.
Justifying the India entry of Blackstone, whose primary markets are the US and Western Europe, he said the group had done enough due diligence on the economy and its potential.
Soon after it announced investment plans for India, Blackstone chairman Peter G Peterson and president Hamilton E James met Finance Minister P Chidambaram and Planning Commission deputy chairman Montek Singh Ahluwalia.
India was selected for its operations overlooking other BRIC (Brazil, Russia and China) nations and Japan due to the country's economic strengths, demography and democracy, Gupta, a former top Reliance official, said.
Asked if there was there any weakness in the economy, he said, "yesterday's underperformance is today's opportunity."
Observing that India's growth was "real" and sustainable, he said the economy would need more foreign capital since the present savings rate was not sufficient for placing the economy on higher orbit of growth.
Blackstone, which prioritised India as the destination for FDI among the Asian economies, plans to invest in various sectors, including retail, business process outsourcing and IT-enabled services.
Gupta made it clear that Blackstone would be investing in those entities that have excellent management, good growth prospects and competitive advantage.
"We are agnostic on sector and size," he said adding that the group would invest wherever there was scope for improving value addition and needed private equity.
After meeting Chidambaram on Wednesday, Peterson had said the group viewed that India needed more foreign direct investment and there was a good opportunity.
He had said Blackstone investments were based on firm analysis and "we take each investment one at a time."
Incorporated in 1985 with $400,000, Blackstone believes that in a world of giant organisations with a broad array of services, there was room for a small firm with the highest levels of professionalism and integrity, and senior level attention to clients and relationships.