Investment in infrastructure preferred

HYDERABAD: Frequent changes of leadership (CEOs) cannot turnaround companies that are making losses, instead the companies should strengthen the baseline of their balance sheets by cutting down on unproductive expenditure, according to venture capitalists (VCs).

Against the background of valuations of companies dwindling in the wake of economic recession, the VC and private equity (PE) funds have become wary of investments.

Mergers and acquisitions (M&A) appear to be one solid option for the VCs and PEs to exit from any setting.

VC Circle Investment Forum organised a series of panel discussions here on Thursday on ‘investing in a perfect storm’.
First investor

While the VCs and PEs desire to invest in infrastructure companies building airports, ports, roads, etc, they wanted the government to be the first investor to propel the activity.

Sudhir Sethi, CMD of IDG Ventures felt that the investors wanted to wait and watch, as the sizes and number of deals would plummet.