New Delhi, May 7 (IANS) India’s private equity and venture capital (PE-VC) investments staged a recovery in 2024, growing by approximately 9 per cent to reach $43 billion across close to 1,600 deals, with traditional sectors taking the lead in driving market growth, a report showed on Wednesday.
The recovery strengthened India’s position as Asia-Pacific’s second-largest PE-VC destination, capturing approximately 20 per cent of total investment and reflecting growing investor confidence in the country’s macroeconomic stability, according to the report by Bain & Company.
While India’s overall increase was primarily driven by VC and growth investments, PE investments maintained stability at $29 billion, as funds navigated high valuations in buoyant public markets, making deal closures more challenging.
“We are seeing a clear shift towards buyout deals, with their share of overall PE deal values rising to 51 per cent in 2024 from 37 per cent in 2022. This reflects a strategic emphasis on securing control positions in high-quality assets across sectors, enabled in part by record dry powder, and signals that buyouts could remain central to PE activity as funds seek scalable value creation opportunities.” said Prabhav Kashyap, Partner at Bain and Company.
Real estate and infrastructure, and select traditional sectors like IT/ITeS, financial services, healthcare-led funding while other traditional sectors (such as energy, manufacturing) eased after growing for two years, with a subdued year for deal closures amidst high valuations driven by public markets and increased competition.
Real estate and infrastructure led the pack at 16 per cent of total PE-VC investment clocking in an approximately 70 per cent surge in deal value over the previous year. Financial services saw a robust growth of approximately 25 per cent, driven by NBFCs, especially in affordable housing finance, with 14 deals including seven $100 million transactions in 2024.
2024 marked a watershed year for exits; India exits surpassed all other markets in Asia-Pacific with values reaching an impressive $33 billion, representing a 16 per cent year-over-year growth, as investors increasingly looked to buoyant public markets to exit maturing positions, said the report.
–IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
