Investors are bullish on India, as its economic growth rate is the fastest in the world. Private equity (PE) and venture capital (VC) funds invested USD 6.9 billion in May 2024, which is 54 per cent more on a year-on-year (YoY) basis, according to the EY-IVCA report.
Growth of PE and VC investment in real estate and infrastructure
The report said that investment in real estate and infrastructure by PE/VC has increased by 67 per cent year-on-year to USD 2.5 billion in May 2024 from USD 1.5 billion in May 2023. This is 183 per cent more than April 2024. The total number of deals has increased by 45 per cent year-on-year to 100 in May 2024, from 69 in May 2023, the report stated.
Pure-play PE/VC investment has increased by 47 per cent to USD 4.4 billion in May 2024, from USD 3 billion in May 2023. The real estate sector was the top sector in May 2024, with investments of USD 2.5 billion. This was followed by the financial services sector, which received an investment of USD 1.6 billion.
Infrastructure sector
The infrastructure sector has been a favourite of PE and VC. In the last five years, 17 per cent of PE/VC investment has been in this sector. In terms of value, PE/VC has invested the most in the renewable energy sector, followed by roads and highways.
Growth investment deals by PE/VC investors will have the highest deal type in May 2024. Their size was USD 2.5 billion, which was 36 per cent of the total investment. This was followed by buyout investment deals worth USD 2.3 billion.
