PE/VC Investment Surges 8% to $31.5 Billion in H1 2024

Mumbai, Jul 22 (PTI) Private equity funds and venture capital funds investments have risen 8 per cent year-on-year to USD 31.5 billion in the first half of 2024, a report said on Monday.

The amount of funds invested is 30 per cent higher than the July-December 2023 period, the report by industry lobby grouping IVCA and consultancy firm EY said.

From a volume perspective, the number of deals increased to 654 during the six months from 441 in the preceding six months and 439 transactions in the year-ago period.

"Notwithstanding valuation challenges, India continues to be a bright spot for deal-making, with its PE/VC ecosystem innovating to find opportunities for investments and make the best of the buoyant exit conditions," the consultancy firm's partner Vivek Soni said.

Pure play PE/VC investments (excluding real estate and infrastructure sectors) at USD 18.6 billion in H1 2024 were 20 per cent higher compared to USD 15.5 billion in the year-ago period.

There were 69 large deals of over USD 100 million each totalling USD 22.6 billion in the first half of 2024, against 61 large deals aggregating to USD 18.1 billion in the preceding six months.

These included Brookfield's acquisition of ATC India Tower Corporation for USD 2 billion, followed by two USD 1.5 billion deals, including Macquarie's acquisition of Vertelo and ADIA and KKR's investment in Reliance Retail Ventures warehousing assets.

Exits were up 18 per cent in terms of value at USD 11 billion, compared to the year-ago period's USD 9.4 billion, but were down by around a third compared to the preceding six months' USD 15.5 billion.

The first half of the fiscal recorded USD 6.7 billion of funds raised by 45 funds, which was 34 per cent lower than the year-ago period, the report said.