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MC Insider | An artful dodger, from cold storage to hot commodity and Arabian dreams

Published on 29/04/2025 10:02 AM

HUSH-HUSH TALES FROM THE STOCK MARKETS, BOARDROOMS AND CORRIDORS OF POWER

Last Updated: April 29, 2025 / 10:02 IST

Art of the deal?

The India head of a buyout firm has secured a two-year extension. On paper, it seems routine. But here’s the twist: the fund manager in question had made headlines for losing a significant sum after buying fake artwork.

While such an incident would typically raise uncomfortable questions about a fund manager’s judgment, the decision to extend his tenure was made for a specific reason.

The fund’s leadership believes asking him to leave would send the wrong signal to investors, especially since exits from some of the investments made during his tenure are underway. One of the fund’s newer vehicles is reportedly considering buying some of these assets to facilitate exits for the older fund’s investors. Continuity in leadership is seen as critical during this phase.

For now, he’ll stick around to help land the exits.

Healthy head-hunting

This global private equity firm, which has seen its fair share of top-deck rejigs in India in the past few years, abruptly halted its healthcare investments last year.

To unlock--or not to unlock?

An asset in the industrials space was nearly sold to a top investor with significant real estate investments before the deal hit a wall over a valuation mismatch in the final leg of the transaction last year.

Fast forward to this year: the target company has gained scale and hit impressive operating profit numbers. One wonders whether the owners, who enjoy a rather splendid view of the Arabian Sea, may be tempted to unlock value again.

But it’s a tricky call. With tariff tensions casting a shadow and exports driving much of the business, timing will be everything. The Arabian Sea may look calm now, but the trade currents are anything but.

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