Real estate PE funds pick lending experts for top jobs
When India is witnessing highest level of private equity (PE) investments in real estate, PE funds are relying on hiring senior management with a lending background.
Maneesh Yadav, former business head of mortgages & commercial real estate at Aditya Birla Group, was promoted in October as the chief executive officer (CEO) of Aditya Birla Real Estate Fund by replacing Apurva Muthalia who moved to Chinese PE giant Fosun Group.
According to experts, the first-hand experience with developers is the key reason for hiring seniors from lending background.
“People from lending background know about developer’s historical and prospective financial condition, quality of financial and operating control, quality of capital structure & sustainability of earning and finally, quality of corporate governance,” said Ramesh Nair, chief operating officer at property advisory JLL India.
According to Cushman & Wakefield, the global real estate consultants, this year could record the highest Private Equity investments in real estate since 2008 which is estimated to be Rs43,600 crore.
Sunil Rohokale, former managing director & chief executive officer at lending major, ICICI Home Finance Co Ltd, currently serves as managing director & chief executive officer of real estate PE fund ASK Investment Managers Private Ltd. “The success rate of real estate PE fund headed by ex-lender of real estate is bound to be high. He understand demand-supply, knows the customers for project, how to identify the developer and analysing the balance sheet,” said Rohokale.