Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

PE, VC investments surge 60% to a record $26bn in 2017: Study

Author: PTI/Thursday, April 5, 2018/Categories: Economy

PE, VC investments surge 60% to a record $26bn in 2017: Study

Mumbai, April 5 - Investments by private equity and venture capital funds surged 60% to a record high of USD 26 billion in 2017, while the bull markets helped register highest ever exits in a year, a report said today.

The exits grew 60% USD 15.7 billion with the public market being the preferred mode, consultant Bain & Company said.

Terming the year as a "strong year" for the private equity market, its partner Arpan Sheth attributed the rise to improving economic indicators, formalisation of the economy, and steps like passage of the bankruptcy law to address the non performing assets issue.

From a fund raising perspective, there was a 48% increase with India-focussed funds raising USD 5.7 billion, it said, with a bulk USD 5.1 billion being raised by alternate investment funds like those looking for assets in distress.

The quantum of "dry powder", or the investible money which the funds are sitting on, is constant at USD 9 billion at the end of the year, it said.

The mergers and acquisition activity increased 53.3% to USD 77.6 billion, it said adding that the number of active institutional investors has increased to 491.

The report said there were over 200 exits during the year and they were driven more by transaction value. As against a 60% surge in value, the number of deals grew by only 7%, it said.

However, in its report, which comes amid concerns of high valuations in the country, Bain said most funds expect a decline in returns by 2-4 per cent in the next 3-5 years.

"According to India-focused fund managers, a mismatch in valuation expectations between investors and firm owners hinders deal making, while a high level of returns could hinder exits," it said.

The funds are also concerned about limited partners investing directly into companies, it said.

Print Rate this article:
No rating

Number of views (32)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.