Private equity investments stood at $4.3 billion in the April-June quarter and the deal momentum is likely to continue in the remaining second half of this year as well, according to PwC. The leading consultancy firm said, besides, significant investments, the second quarter of this year also witnessed PE exits worth $3.5 billion.
“A quick run-down of the transactions for the quarter would indicate that with the exception of e-commerce investments, a very large proportion of PE investments are secondary transactions, i.E. A PE fund facilitating exit of an existing investor," PwC Partner and leader Private Equity Sanjeev Krishan said.
However, this cannot undermine the focus that PE funds have on fresh investments, PwC said. “A number of PE funds believe they are under-invested in India, and are anticipating atleast a sequential six-seven year growth window in India, which should normally be a good time-frame to exit the investment too,” Krishan said.
According to the report, the resilience in the stock markets is giving promoters the confidence in IPOs, and some of these would provide exit to PE investors. “We have already seen a large number of exits through sales in the stock market and this is expected to continue as well,” the report added.
Sector-wise, technology sector contributed over $1.7 billion in investments. E-commerce and E-services continued to contribute the most significant component of technology PE investments and this is unlikely to change in the near future.