Business

PE/VC Investments Surge 156% In November; Buyouts Lead The Way

Private equity (PE) and venture capital (VC) funds invested $4 billion in November 2024, a 156% jump compared to the same month in 2023, according to a report by IVCA and EY. However, the figure was 15% lower than October’s $4.7 billion.

The month witnessed 87 deals, a 47% rise from 59 transactions in November 2023. Pure-play PE/VC investments totaled $3.5 billion, up 297% from $873 million a year earlier and 27% higher than October’s $2.7 billion.

Geopolitical Factors Influence Market

Despite a strong start to 2024, geopolitical tensions, US election uncertainties, and inflation have impacted the market. Vivek Soni, Partner at EY, noted that a gap between seller expectations and buyer valuations also influenced deal-making.

Also Read: India Launches G20 Talent Visa To Attract Leading Global Scholars & Experts

Sectoral and Deal Trends

Buyout investments led November’s activity with $1.6 billion, followed by $1.1 billion in startup funding. Sector-wise, industrial products attracted the most investment at $1 billion, followed by financial services ($723 million) and e-commerce ($550 million).

Real estate and infrastructure saw a 20% decline, with investments totaling $566 million compared to the year-ago period.

Strong Exit and Fundraising Activity

November recorded 15 exits worth $3.7 billion, a significant increase from $1.2 billion across 22 exits in November 2023.

Fundraising also gained momentum. Eight funds raised $1.1 billion in November, nearly triple the $401 million raised by six funds in November 2023.

The report underscores a mixed market landscape, with robust growth in investments and exits but challenges posed by global uncertainties.

Shibra Arshad

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