PE inflows dip 72% amid global credit crisis: report

Private equity (PE) investments in India have declined by 72 per cent to $9.67 billion till October, largely due to global financial turmoil.

The total number of PE deals during the first 10 months of 2008 stands at 274, with an announced value of $9.67 billion as against 328 deals amounting to $13.43 billion during the corresponding period in 2007, global consulting major Grant Thornton said.

"Private equity investments in India are showing some amount of slowdown, considering that a considerable amount of investments have been coming from international funds, which are in turn funded by international banks or investment banks," Specialist Advisory Services Partner CG Srividya said.

Echoing similar sentiments, Grant Thornton Transaction Advisory Services Partner Harish HV said: "The private equity scenario is likely to slowdown temporarily even though there is a substantial amount of money available for investment as companies and investors adjust to the new realities of valuation and also reexamine fundamental investment assumptions."

There has been a downtrend in this space due to global financial crunch, which has forced most of the economies like Germany, Italy, Japan, Singapore into recession.

While two of the world's largest economies are witnessing negative growth. Experts are, however, predicting that though the Asia Pacific region is experiencing the ripple effect of the global crisis, but Asia is likely to recover from the situation more quickly than others.