Another partner to quit Baring PE India

After the exit of Subbu Subramaniam from Baring Private Equity Partner India (BPEP India) over 'professional differences' with its managing partner Rahul Bhasin, another partner, Akhil Awasthi, is set to leave the company. Awasthi, senior vice-president, is learnt to have put in his papers and is expected join the private equity arm of Tata Capital soon.

After Subbu's exit, Gurgaon-based Barings was left with four partners Rahul Bhasin, Munish Dayal, Akhil Awasthi and Sundaram Sivaramakrishnan.

Awasthi guides the research and strategy initiatives of the BPEP India fund. He was a founding member of ITI Pioneer Asset Management Company, India's first private sector mutual fund. Awasthi has been into asset management and corporate banking for about 13 years now.

When contacted by FE, Awasthi said, "I do not want to comment now". Rahul Bhasin could not be reached for his comments. However, BPEP has denied the developments. An email from Baring spokesperson said, "We categorically deny the rumours. (We) would like to take this opportunity to highlight that these false claims, with little or no foundation, will only fuel anxiety for our stakeholders, leading to groundless speculation."

Tata Capital, which saw the exit of its PE arm head Shailendra Bhandari recently, is in the process of strengthening its team. Bhandari, who joined ING Vysya Bank as CEO, stayed with Tata Capital for less than a year.

When contacted, a Tata Capital spokesperson, said, "Tata Capital's private equity venture is being directly overseen by our man- aging director, Praveen P Kadle. We do not wish to comment on any other speculation. An announcement will be made at an appropriate time." Tata Capital has plans to raise about $350-400 million PE fund at the initial stage.

BPEP India has begun investment management in 1998 as part of the Baring Private Equity Partners Group. It is ranked among India' largest private equity funds, with cumulative assets under management of about $1 billion. The fund manager raised its third India fund of over $500 million last year.

Bhasin, like Subbu, is an alumnus of Indian Institute of Management, Ahmedabad. The duo is credited with pioneering the private equity business in India.

Bhasin and Subramaniam senior most partner parted ways after nearly 12 years of working together. Bhasin is reportedly buying back Subramaniam's stake in the firm. Arbitration proceedings are reportedly on to decide the value of the partnership stake.

Bhasin had been a fund manager with Citibank Global Asset Management.

Baring holds significant equity stakes in AuroMira Energy, Integra Software, Infrasoft Technologies, JRG Securities, among others. It also has stakes in Jyothy Laboratories and MphasiS (MPHASIS.NS : 677.1 +4.5). Baring recently invested $10 million in Sphaera Pharma, an integrated drug discovery and development company.

The Baring Website says it was the first fund to conclude a management buyout of a listed company in Asia and a cross-border MandA in the country.