Private equity investments hit a record high of $62 bn in 2020

MUMBAI: Private equity investments in India rose 38% to hit a record high of $62.2 billion in 2020 despite uncertainty caused by the coronavirus crisis, a private equity report showed.

Investors are optimistic about the fund raising environment for 2021, the report published by The Indian Private Equity and Venture Capital Association and Bain and Company showed.

Investments into Reliance Industries’ Jio platforms and Reliance Retail totalled $26.5 billion, making up 40% of the total deal value. Healthcare deals saw a 60% surge over 2019.

Saudi Arabia’s state-run Public Investment Fund made the largest aggregate investments worth $3.3 billion in three deals in 2020, while global private equity giant KKR made six investments totalling $3 billion.

“Although overall investment activity remained muted from March to May due to Covid-led uncertainties, investor confidence recovered strongly in (the second half) to pre-covid levels with late-stage and buyout deals witnessing increased traction,” the report said.

There has been a steady rise in the number of active private equity funds in India in 2020.

Fund raising shrunk by 33% from 2019 levels across Asia-pacific markets, while India’s share in the Asia-pacific fundraising remained steady at 3%.

The report showed overall exit value in India declined by 30% year on year in 2020.

“Investor confidence has remained high, with India-focused dry powder holding steady at $8 billion, and more than 90% of closed funds at target or oversubscribed,” the report said.