No poll vault? PE cos bet on India, eye 25% rise in deal value in 3 yrs

There’s some good news amid slowdown.

Irrespective of the government that comes to power at the Centre after the Lok Sabha elections, about 80% of private equity (PE) investors in India expect a 10-25% growth in deal value in the next one-three years beginning 2015, with about one-fifth forecasting 25% growth, a study by global management consulting firm Bain and Company has found.

However, PE investors are less optimistic about 2014, according to the study titled India Private Equity Report, 2014.

Overall deal volume increased across sectors, registering a 26% growth, predominantly fuelled by the IT and ITES (information technology-enabled services), healthcare and BFSI (banking, financial services and insurance) sectors (see graphic).

The top 25 deals comprised 55% share of total investments in 2013 compared to 44% in 2012.

NEW DELHI:

Doha-based Qatar Foundation Endowment’s 5% stake acquisition in Sunil Mittal-led Bharti for $1.18 billion topped the list.

PE funds are typically managed by a General Partner (GP), which is controlled by profit- IT and ITES, healthcare and BFSI sectors led list of sectors with most deals The top 25 deals comprised 55% share of total investments in 2013 compared to 44% in 2012 Investments in growth-stage deals comprised more than 70% of total deals last year against 66% in 2012. sharing partners of the firm. About 53 General Partners were interviewed for the report.

Investments in growth-stage deals continued to surge in 2013 and comprised more than 70% of total deals against 66% in 2012.