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Posted: 13/May/2008 at 8:34pm
Originally posted by deveshkayal
Infact, Kotak Investment Banking MD Falguni Nayyar herself has mentioned that PE is valued at 15-20% of AUM !!!
Hey Devesh, If you are referring to this article then it applies to firms that provide advisory services to VC or PE funds.
The PE/VC funds will either make big profits or lose capital based on whether their bets work out or not.
The 15-20% of AUM valuation is essentially valuing only the managament fees of 2% at 10 PE. That's the lowest possible valuation for the fund.
While its prudent to have a very conservative valuation approach but I feel its also important to keep the magnitude of the upside in mind, especially if one is trying to get a handle on the long term potential.
What is the difference between Future Capital's Indivision and Kotak PE ? Both raises the fund from outsiders and invest it on their behalf and take away 2/20 as management fees and profit.
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
Joined: 07/Feb/2007
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Posted: 14/May/2008 at 9:56pm
Originally posted by deveshkayal
What is the difference between Future Capital's Indivision and Kotak PE ? Both raises the fund from outsiders and invest it on their behalf and take away 2/20 as management fees and profit.
I think both are same. Because after collecting the money, both are investing in companies which gives high returns.
Joined: 17/Dec/2008
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Posted: 17/Dec/2008 at 1:53pm
Private sector Kotak Mahindra Bank has made a provisioning of Rs 86 crore to cover the mark-to-market (MTM) losses of its clients on account of forex derivative transactions. Around 45 clients of the bank which have taken exposure to forex derivatives have incurred MTM losses of Rs 612 crore on account of forex transactions as on May 8, 2008. “With regard to exposure to forex derivatives, the bank has no exposure to SME clients,” vice-chairman and MD Uday Kotak said. _____________________________________________________________
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Posted: 22/Jan/2009 at 7:19pm
Maybe CHinki and Snehalji can add to this but I heard the interview on TV and the CFo said a very important thing and he indicated that all NPA does not make a zero recovery since the loans are against security and hence out of the provisions a reasonable percentage is recoverable though with a lag.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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