PE investments ease to $14.60 bn in Jan-Sept due to market volatility

621 PE investments worth $14.60 billion were announced in the reported nine-month period of 2018: Report

Private Equity (PE) investments moderated to $14.60 billion during January-September period, owing to macroeconomic concerns, market volatility and valuations of companies, a report said Tuesday.

According to Grant Thornton's latest PE Dealtracker, 621 PE investments worth $14.60 billion were announced in the reported nine-month period of 2018. In the year-ago period, the value stood at $15.60 billion.

"India's rupee has slumped to an all-time low amid an investor exodus from emerging markets, which threatened to dent business confidence, cautioning PE investors," the report said.

Meanwhile, the July-September quarter marked 217 PE investments worth $5.20 billion, registering 41 per cent growth in terms of number of deals, even as the value dipped by 28 per cent.

"The environment for private equity market has been sluggish due to concerns like the economy, market volatility and valuations, among other things," said Prashant Mehra, Partner, Grant Thornton India LLP.

Mehra further said: "We expect to see a rise in the PE activity due to the government's focus on providing a fertile ground for digitisation and tech investment through policy initiatives by incubating tech funds with traditional banks".

As per the report, the September quarter was dominated by investments in startups, which contributed to 60 per cent of total investment volumes garnering $1 billion. FinTech also attracted significant attention from investors with 20 deals, followed by retail and health tech segments.

Some of the other top deals during the third quarter include ADIA and TPG Capital's investment in UPL Corp, KKR's investment in REEL, Udaan's series C funding for $225 million, the report said adding that Curefit raising $120 million marks the biggest ever fund raise by an Indian healthcare startup.