PE funding improves sequentially in second qtr

Bengaluru: Private equity investments in the second quarter of this year totalled $3.5 billion, a fall of 49.1% compared to the corresponding period last year, when it was $6.9 billion, showed data from financial data Refinitiv. However, it increased 37.1% sequentially. The total number of deals in the second quarter declined by 17.1% to 300 compared to 362 deals in the second quarter last year.
“Against the backdrop of persistent macroeconomic uncertainty, geopolitical headwinds and tight credit markets, private equity investments in India dropped 61% during the first half of 2023 compared to the same period in 2022, with a sum of equity invested amounting to $6.1 billion. This is the lowest first half period by value for PE investments in India since 2020. Internet Specific continued to attract the largest share of private equity capital in India, despite the 69% decline in sum of equity invested compared to a year ago,” said Elaine Tan, senior analyst at Refinitiv.
Despite the challenging environment, private equity fundraising activity in India saw some uptick in the number of firms and funds raising capital in the second quarter. Number of funds saw a 53% sequential increase during the second quarter of the calendar year from the first quarter, with a cumulative total of $2.6 billion (up 0.8% from 1Q2023). This brings total PE fundraising activity in India to $5.2 billion during the first half of 2023, down 27% from a year ago.