Investments by private equity and venture capital funds have declined by 1% year-on-year to $13.5 billion in the March 2024 quarter, according to a report. However, it was 41% 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% 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 $6.5 billion across 23 deals, 138% higher than the $2.7 billion across 14 deals in the year-ago period, it said, adding that the same was led by the $2 billion investment by Brookfield in ATC India Tower Corporation.
The financial services sector was the second largest by sector at $1.5 billion across 48 deals, 4% lower in terms.
Pure play PE/VC investments (excluding investments in real estate and infrastructure) were 5% higher at $6 billion and accounted for 45% of all the PE/VC investments in the quarter.
Buyouts were the highest deal segment at $4.5 billion across 10 deals, 39% higher in terms compared to $3.2 billion across 16 deals in the year-ago period.
There were 80 exits in the quarter worth $5.1 billion, 35% higher than the $3.8 billion in the year-ago period and $6.6 billion in the preceding December quarter.
PE and VC funds raised $2.8 billion for investing during the quarter, down 27% compared to the year-ago period.
