DR.Thillai Rajan » Research Interest

RESEARCH INTEREST

Corporate Finance

Venture Capital and Private Equity

Project and Infrastructure Finance

Public Private Participation

RECENT WORK DONE

Unit Costs of Public and PPP Road Projects: Evidence from India

In recent years, there has been a rapid growth in the number of road projects that are implemented in a PPP format, not just in India, but in many emerging countries. However, there has been limited research about the cost effectiveness of PPP projects vis-vis the traditional government procurement model. This paper is an attempt to address that gap. Specifically, this study has the following objectives. First, a comparative analysis of the PPP and public procurement road projects in terms of road lengths, project costs, and unit project costs will be discussed. Second, an analysis of the effect of the type of project procurement (PPP vis-vis public) on unit road costs, after controlling for other factors, will be presented. Third, the determinants that influence private-sector investment will be identified.

Impact of private equity investments in infrastructure projects

This paper analyses the role of PE investments in infrastructure financing. The findings are based on an analysis of 2821 infrastructure projects that were announced during 1990e2009. It was found that projects with PE investment were larger when compared to projects that did not have PE investment, indicating that that PE investment helped in successfully financing larger projects. Our analysis also indicated that PE investment in infrastructure is more
frequently seen in developed countries as compared to developing countries. In developing countries, the number of sponsors is higher in projects with PE investment without any corresponding increase in project size. This indicates that PE investors have helped in sharing the project risk among a larger group of investors, thereby reducing the risk faced by the individual sponsors.

A Lifecycle Analysis of VC-PE Investments in India: Half Full or Half Empty?

This article is concerned with the main government policies in equity financing and capital market funding to support entrepreneurial development in Asia. In particular, the author undertakes a comparative case study analysis of four Asian countries: Thailand, Malaysia, Singapore, and Taiwan. The study finds that the government intervention model is successful in Singapore and Taiwan. Although Singapore and Taiwan have clearly defined agencies responsible for carrying out policy implementation, Malaysia and Thailand suffer from having redundant organizations/agencies competing on offering similar innovation financing schemes. The study offers effective innovation financing policy recommendations to support the national economic and social development. The proposed policies can be integrated into national strategies to strengthen the innovation system of the Asian countries.

Beyond Capital: Private Equity and Real Estate Development in India

The venture capital and private equity (VCPE) industry in India has grown significantly in recent years. During five-year period 2004-2008, the industry growth rate in India was the fastest globally and it rose to occupy the number three slot worldwide in terms of quantum of investments. However, academic research on the Indian VCPE industry has been limited. This paper seeks to fill the gap in research on the recent trends in the Indian VCPE industry also highlights some of the key areas to ensure sustainable growth of the industry. Early stage funding opportunities should be increased to ensure that there is a strong pipeline of investment opportunities for late stage investors. VCPE investments should be seen as long-term investments and not as â€œquick flipsâ€. To achieve this, it is important to have a strong domestic VCPE industry which can stay invested in the portfolio company for a longer term.

The real estate sector in India has attracted substantial investment from Private Equity (PE) investors since 2006. This study is based on an analysis of 290 PE deals in real estate and investment of $15 billion during 2004 â€“ 10. During the period 2006 â€“ 10, real estate sector accounted for 34% of the total PE investments in India. The characteristics of projects that have obtained PE investment indicate that these are very large projects. 80% of the PE investment in real estate has been from foreign PE firms. Most of the investments have been made at the project or SPV level, to facilitate better monitoring post investment. The diligence and active monitoring that is normally associated with PE investments have brought in the much needed transparency and better corporate governance standards to this sector. Tier 2 cities accounted for as much investment as that of Tier 1 cities. However, the average investment size in Tier 2 cities was much higher than that of Tier 1 cities. By taking top class real estate development beyond the boundaries of Tier 1 cities, the PE firms have in a way contributed to the development of some of the smaller cities.

The Tigers and Their Stripes: Types of VC Firms and Their Investment Patterns in India

The venture capital and private equity industry in India has grown significantly in recent years. Using data from 2004â€“2008, a life cycle analysis provides findings that can impact the long-term growth of the industry. A large proportion of the deals are Round 1 investments, with a dramatic drop in subsequent rounds. Most investments are in late-stage financing and take place many years after the incorporation of the investee firm. The industry is also characterized by the short duration of the investments. To ensure long-term growth of the industry in India, investments should be made in early stage financing, investors should stay invested for a longer duration, and larger rounds of funding should be made in the portfolio companies.

Venture capital and private equity in India: an analysis of investments and exits