Source: Business Standard, Nov 28, 2019
New Delhi: Private equity investments witnessed a robust yearly growth in October with 72 PE deals garnering around $3.7 billion, even as merger and acquisition activity saw a downtrend, a report said on Thursday.
According to Grant Thornton’s monthly PE Dealtracker, private equity/venture capital transactions reported 22 per cent and 25 per cent increase in deal volumes and values, respectively as compared to October 2018.
The rise in PE deal values was largely driven by the corporate tax rate cut, which has improved both investor sentiment and confidence.
Last month, the average deal size stood at $52 million, up from $28 million recorded in September 2019.
“There were 72 deals aggregating to $3.7 billion reported in October 2019. Upbeat PE/VC activity during the month offsets the shortfall in merger and acquisition (M&A) activity,” Pankaj Chopda, Director, Grant Thornton India LLP said.
“The key investments were primarily to pare debt, expand markets and capitalise on inorganic growth opportunities. Considering the current economic situation, we expect big ticket PE/VC investments to continue,” Chopda said.Read the rest of this entry »