Posted on 22 March, 2018
Mukul Gulati, Managing Partner, Zephyr Peacock India
writes in Livemint on the positive impact of investment bubbles. He says “the
tech bubble in the late 90s resulted in significant investment in global
telecommunication infrastructure” and that some of the new businesses in India
are “already changing consumer behaviour”
Below is an excerpt from the post which first appeared on
Livemint on 22 March 2018:
Click here to read the full article on ‘Livemint’
“From the tulip mania in the 17th century to the global
financial crisis of the last decade, investment bubbles can have devastating
consequences such as economic recessions and job losses. But there have been
instances where financial bubbles have had long-lasting positive economic
impact.
For instance, the tech bubble in the late 90s resulted in
significant investment in global telecommunication infrastructure. While the
resulting overcapacity resulted in massive losses for the companies that
installed the fibre, the lower cost of data communications made the internet
more accessible for billions of new users.”
“Internet pioneers including Google and Paypal were also
spawned during the same period. More recently, the investment boom in shale oil
in the US resulted in several bankruptcies but also made the country energy
independent and its manufacturing industry more competitive.
In India, over the last few years, the level of activity in early stage investing in consumer internet businesses has increased significantly.” “A handful of winners will emerge as sustainable enterprises, create jobs and generate attractive returns for investors. Some of these new businesses are already changing consumer behaviour and improving lives.”
Zephyr Management is a global emerging markets investment manager, specializing in the creation and management of highly focused private equity funds
Since its inception in 1994, Zephyr has sponsored and/or managed 26 investment funds in both public and private securities markets representing approximately $1.2 billion in combined commitments and assets under management
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The firm has initiated several private equity funds investing in several African countries, South Korea, Mexico, India, and Sri Lanka since its founding. Zephyr's funds serve medium size enterprises that are often ignored by larger private equity players. Zephyr funds provide growth capital to established companies with proven business models and sustainable competitive advantages.
Investment activities are currently focused on India, Sri Lanka and Africa.
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