Mahindra group floats private equity fund Mahindra Partners

Private equity funds seem to be hot with business houses and the latest to float one is the diversified Mahindra & Mahindra (M&M) group.

The group has formed an in-house private equity fund, Mahindra Partners, which will be the group's growth driver in the future according to Anand Mahindra, vice-chairman and managing director of M&M.

He said that Mahindra Partners would be different from conventional PEs in many ways.

Unlike other PE funds Mahindra Partners will not have specified earmarked funds, he said.

Mahindra said that each project and start-up would be evaluated and funded appropriately which would define the difference between Mahindra Partners and other private equity funds.

He added that typically PE funds face pressure on redemption, say after seven years but Mahindra Partners would be allowed more elbow room to scale up its start-ups and not 'pressured to get in and out of a business within a certain period of time.''