PE-VC fundraising plunges 94% in Q1: outlook for second half remains bleak

Fund raising in the June quarter dipped to $171 million, a 94 per cent decline over $2.75 billion raised last year

The Covid-19 pandemic has taken a toll on fundraising by India-focused private equity (PE) and venture capital (VC) funds, with the ability of limited partners (LPs) to do due diligence on general partners (GPs) and asset allocation of LPs’ global portfolios taking a hit.

Fundraising by these entities in the June quarter plunged to $171 million, a 94 per cent decline compared with the $2.75 billion raised during the same period last year. 

“PE, VC fundraising by India-focused funds has been impacted primarily on account of the pandemic and its collateral effects on travel and the ability of LPs to