Hindustan Times ST (Jaipur)

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

- Reuters

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.

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