Private equity (PE) and venture capital (VC) investments in October 2024 totaled $4.7 billion, a 4 per cent increase from $4.5 billion in October 2023 and 40 per cent higher than the $3.4 billion recorded in September 2024, according to the latest IVCA-EY monthly PE/VC roundup. The month witnessed 91 deals, reflecting a 21 per cent rise in deal volume compared to 75 deals in October 2023. However, startup investments fell sharply, registering $880 million across 56 deals, marking a 50 per cent drop from $1.8 billion across 42 deals in October last year.
Nine large PE-VC deals, each exceeding $100 million, aggregated $3.3 billion in October 2024, a 4 per cent decline from $3.4 billion across 11 deals in October 2023. However, this was 69 per cent higher than September's $2 billion across eight deals. The month’s largest deal saw Temasek acquiring an 18 per cent stake in VFS Global Services from Blackstone for $950 million. Other significant deals included Temasek’s $200 million investment in Rebel Foods and Eruditus Learning Solutions raising $150 million from TPG, SoftBank, Accel, and others.
Vivek Soni, Partner and National Leader, Private Equity Services, EY, highlighted the growing appeal of mature companies due to their stable risk-return profiles. “These companies offer substantial returns within shorter periods and are more predictable than early-stage ventures,” he noted.
The report also cited rising inflation, rupee depreciation, and subdued Q3 corporate earnings as factors causing cautious investor sentiment. PE/VC exits in October stood at $1.1 billion across nine deals, 40 per cent lower than $1.9 billion in October 2023, with secondary exits contributing 96 per cent of the total exit value.
While October marked a robust start to the final quarter of the year, Soni warned of muted investment activity in the next two to three months amidst midcap-small cap market volatility.
