PE/VC Deals Surge to USD 4.7 Billion in October

Mumbai, Nov 18 (PTI) Investments by private equity and venture capital funds increased to USD 4.7 billion in October, a report said on Monday.

The investments are 4 per cent higher than the USD 4.5 billion in the year-ago period and represent a 40 per cent growth over the preceding September's USD 3.4 billion, the report by consultancy firm EY and industry lobby grouping IVCA said.

By the number of transactions, October 2024 saw a 21 per cent increase with 91 deals compared to 75 in October 2023, the report said.

"The Indian equity markets have seen some correction, challenges around bid-ask spreads in private transactions remain. While we remain cautiously optimistic in the medium term, for the next 2-3 months, we project tepid PE/VC investment activity," the consulting firm's partner Vivek Soni said.

In October, pure-play PE/VC investments declined by 19 per cent year-on-year to USD 2.7 billion, while it was the real estate and infrastructure asset class that saw a growth of 67 per cent jump to USD 2 billion.

Credit investments led the way in October 2024, with USD 1.8 billion invested across nine deals, a staggering increase from USD 169 million across five deals in October 2023, marking nearly tenfold growth in investment.

From a sectoral point of view, infrastructure was the top sector in October 2024, attracting USD 1.8 billion in PE/VC investments across nine deals, followed by technology at USD 1.1 billion and financial services at USD 470 million.

The month recorded nine exits worth USD 1.1 billion compared to USD 1.9 billion in October 2023 across 22 exits, the report said.

Total fundraises amounted to USD 209 million across 10 funds, a significant decrease compared to USD 2.4 billion raised in October 2023 and USD 481 million in September 2024, it said.