TLDR:
– Private equity and venture capital firms are cautious due to global macro conditions in 2024.
– India expected to reach $80-100 billion in annual deployment over the next five years.
Private equity and venture capital firms are expected to remain cautious on their capital deployment in 2024 due to global macro conditions. Despite this caution, India is poised to benefit from substantial capital allocation and is projected to reach $80-100 billion in annual deployment over the next five years, according to a report by Bain & Company. In 2023, investments in India amounted to around $39 billion, down from $62 billion in 2022.
Key points from the report include:
- Sectors such as healthcare, advanced manufacturing, electronics, and electric vehicles have significant deal-making potential.
- PE firms are focusing on quality deals and are hiring talent to assist with value creation in new investment areas.
In traditional sectors, healthcare investments hit a record high in 2023, while advanced manufacturing saw increased activity. Software as a service and new-age tech investing declined sharply. Domestic PE funds’ share of investments increased, while overall investments remained flat over the past five years as they raised larger funds. Homegrown funds like ChrysCapital, Kedaara, and Multiples are aiming for record fund-raises.
