Private Equity India

Private Equity Boom in India

Private equity is expanding past the traditional major financial regions like the UK and United States to the recently booming economies in the East. One of these newly emerging private equity markets is India.

Private Equity
Private equity has exploded in India, in terms of both the volume and the size of deals. Last year was a big year for India domestically, with the number of total mergers and acquisitions and private equity deals increasing from 697 in 2006 to 867. The more impressive increase from 2006 to 2007 is in the size of deals which rose by 82%. The following chart represents the private equity deals in India:

The United States accounts for a very large part of the private equity investment in India. In 2007 it was estimated that the U.S. is responsible for 45% of the private equity investment into India. Asian countries, excluding India, account for 18% and Europe only 12%. These numbers will likely change in 2008 as the U.S. private equity deals have declined this year and China is predicted to rapidly increase its investing abroad.

Venture Capital
As for venture capital, India has seen a similar boom with a strong start to 2008. In the second quarter of 2008, India attracted $238 million in venture capital investment, a 120% increase over an already impressive last year. Over all of 2007, venture capitalists invested $928 million in 80 deals in entreprenuerial companies based in India. Led by large venture capital investments in marketing/advertising companies, this year promises to be another big year for India's venture capital sector.

India has secured its place as a top destination for private equity investment. Last year, for the first time, India surpassed China in terms of the value of private equity deals over a 12-month period. Private equity funds focused in India are expected to raise at least $5 billion in the last two quarters of 2008, more than double the amount raised between June and December of last year. If this prediction comes true, 2008 will be an incredible year for India private equity.

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Tags: Private Equity India, India Private Equity, Private Equity in India, Private Equity Investment in India, Private Equity Funds in India, Venture Capital India

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