Investments by private equity and venture capital funds increased to $4.7 billion in October, a report said on Monday. The investments are 4% higher than the $4.5 billion in the year-ago period and represent a 40% growth over the preceding September's $3.4 billion, the report by consultancy firm EY and industry lobby grouping IVCA said.
By the number of transactions, October 2024 saw a 21% increase with 91 deals compared to 75 in October 2023, the report said.
"The Indian equity markets have seen some correction, challenges around bid-ask spreads in private transactions remain. While we remain cautiously optimistic in the medium term, for the next 2-3 months, we project tepid PE/VC investment activity," the consulting firm's partner Vivek Soni said.
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In October, pure-play PE/VC investments declined by 19% year-on-year to $2.7 billion, while it was the real estate and infrastructure asset class that saw a growth of 67% jump to $2 billion.
Credit investments led the way in October 2024, with $1.8 billion invested across nine deals, a staggering increase from $169 million across five deals in October 2023, marking nearly tenfold growth in investment.
From a sectoral point of view, infrastructure was the top sector in October 2024, attracting $1.8 billion in PE/VC investments across nine deals, followed by technology at $1.1 billion and financial services at $470 million.
The month recorded nine exits worth $1.1 billion compared to $1.9 billion in October 2023 across 22 exits, the report said.
Total fundraises amounted to $209 million across 10 funds, a significant decrease compared to $2.4 billion raised in October 2023 and $481 million in September 2024, it said.
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