Private equity (PE) investments in the country surged over 20 per cent to $9.1 billion last year even as deal volumes declined during the same period, says a report. According to Ernst and Young, PE activity in the country has been range bound with an average of $8.5 billion across 400 deals in each of the last four years. Total number of deals were higher at 415 in 2012.
In terms of value, the top ten deals accounted for about 45 per cent of the total private equity investments made in 2013. Ernst and Young said there has been slowdown in mid-market deal activities due to macro-economic slowdown, regulatory issues, governance matters and slow capital investment cycle and exit issues from current investments.
All these led to investors being more cautious, greater deal scrutiny and longer deal processes, it noted.
The highest number of PE deals last year were seen in the technology space at 80 followed by retail and consumer (50), healthcare (49) and financial services (45).