Private Equity, Venture Capital Fund Investments Decline 1% In March Quarter: Report

Investments by private equity and venture capital funds have declined by 1% year-on-year to $13.5 billion in the March 2024 quarter, according to a report. However, it was 41% higher compared to the preceding December quarter, the report by consultancy firm EY and industry lobby grouping IVCA said.

When looked at from a volume perspective, the number of deals was 33% higher at 292 in January-March 2024 against 220 in the year-ago period, it added.

"We believe the markets and PE/VC investment activity will be range-bound till clarity emerges on election results and the risk of escalation in the geopolitical conflicts eases down," EY partner Vivek Soni said.

The infrastructure sector received the maximum PE/VC investments in the quarter at $6.5 billion across 23 deals, 138% higher than the $2.7 billion across 14 deals in the year-ago period, it said, adding that the same was led by the $2 billion investment by Brookfield in ATC India Tower Corporation.

The financial services sector was the second largest by sector at $1.5 billion across 48 deals, 4% lower in value terms.

Pure play PE/VC investments (excluding investments in real estate and infrastructure) were 5% higher at $6 billion and accounted for 45% of all the PE/VC investments in the quarter.

Buyouts were the highest deal segment at $4.5 billion across 10 deals, 39% higher in value terms compared to $3.2 billion across 16 deals in the year-ago period.

There were 80 exits in the quarter worth $5.1 billion, 35% higher than the $3.8 billion in the year-ago period and $6.6 billion in the preceding December quarter.

PE and VC funds raised $2.8 billion for investing during the quarter, down 27% compared to the year-ago period.