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Private equity investments ride high on India story, deal volume rise by 29 per cent in Q2

While many still remain cautious about the India story, the private equity firms seem to bought the story and are betting big on the growth narrative.

Private equity firms saw a 29 per cent jump in the second quarter of the year—April to June—this year in volumes compared to the same period last year, a research report by VCC Edge said. "Private equity investments in Q2 2015, excluding real estate, were recorded at $3.85 billion across 262 deals, an increase of 29 per cent in deal volume and 43 per cent in deal value, compared to Q2 2014. The average deal value jumped 19 per cent to $20.48 million in the latest period from $17.14 million in 2014," VCC Edge said in a statement.
Not just are the deals back the big deals are back in the market too. According to the report about 70 per cent of the total deals were big ticket deals. "Big-ticket deals (at least $100 million) constituted 71 per cent of the total private equity capital invested in Q2 2015," the report said. According to the report private equity deals jumped by about 27 per cent in the first six-months in 2015 compared to first six months of 2014. According to the report 2015 registered 513 PE deals valued at $8.3 billion from $4.9 billion investments in 403 deals.
While the number of investments increased the exits came down. The number of exits that private equity firms got came down by 3 per cent in terms of deal volume. Exits have always been Achilles' heel for the private equity firms according to the industry trackers. However, as the capital market grows many private equity firms are looking to make an exit through IPOs.
On the other hand globally the India story kept rising as more firms were able to raise funds for investing in India. "Indian companies raised $306 million across 11 offerings in Q2 2015, representing an increase of 47 per cent in deal value as against $208 million capital raised in Q2 2014," the report said.
(Source: Econimic Times)

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