PE/VC investments decline marginally in March quarter: Report

2024-04-19 11:52:50

Mumbai, Investments by private equity and venture capital funds have declined by 1 per cent year-on-year to USD 13.5 billion in the March 2024 quarter, according to a report. However, it was 41 per cent higher compared to the preceding December quarter, the report by consultancy firm EY and industry lobby grouping IVCA said.
When looked at from a volume perspective, the number of deals was 33 per cent higher at 292 in January-March 2024 against 220 in the year-ago period, it added.

“We believe the markets and PE/VC investment activity will be range-bound till clarity emerges on election results and the risk of escalation in the geopolitical conflicts eases down,” EY partner Vivek Soni said.

The infrastructure sector received the maximum PE/VC investments in the quarter at USD 6.5 billion across 23 deals, 138 per cent higher than the USD 2.7 billion across 14 deals in the year-ago period, it said, adding that the same was led by the USD 2 billion investment by Brookfield in ATC India Tower Corporation.

The financial services sector was the second largest by sector at USD 1.5 billion across 48 deals, 4 per cent lower in value terms.

Pure play PE/VC investments (excluding investments in real estate and infrastructure) were 5 per cent higher at USD 6 billion and accounted for 45 per cent of all the PE/VC investments in the quarter. Buyouts were the highest deal segment at USD 4.5 billion across 10 deals, 39 per cent higher in value terms compared to USD 3.2 billion across 16 deals in the year-ago period. There were 80 exits in the quarter worth USD 5.1 billion, 35 per cent higher than the USD 3.8 billion in the year-ago period and USD 6.6 billion in the preceding December quarter.

PE and VC funds raised USD 2.8 billion for investing during the quarter, down 27 per cent compared to the year-ago period.

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