TLDR:
- Private equity and venture capital fund investments declined by 1% year-on-year to $13.5 billion in the March 2024 quarter.
- The number of deals increased by 33% compared to the same period last year.
Article Summary:
According to a report by consultancy firm EY and industry lobby grouping IVCA, private equity and venture capital fund investments saw a 1% decline to $13.5 billion in the March 2024 quarter. However, this figure was 41% higher than the preceding December quarter. The number of deals also increased by 33% to 292 in January-March 2024 compared to the year-ago period.
The infrastructure sector received the most PE/VC investments in the quarter, totaling $6.5 billion across 23 deals, with a significant investment by Brookfield in ATC India Tower Corporation. The financial services sector followed with $1.5 billion across 48 deals.
Pure play PE/VC investments, excluding real estate and infrastructure, were 5% higher at $6 billion and made up 45% of all PE/VC investments in the quarter. Buyouts were the highest deal segment at $4.5 billion across 10 deals, and there were 80 exits worth $5.1 billion in the quarter.
PE and VC funds raised $2.8 billion for investing during the quarter, reflecting a 27% decrease compared to the year-ago period. Looking ahead, EY partner Vivek Soni noted that investment activity may be range-bound until there is clarity on election results and geopolitical conflicts ease.
