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Private equity investments gain momentum during 2015-20

IANS

New Delhi, Feb 17

Private equity investments in India have come of age in India with investments across sectors and maturity cycles of companies during 2015-2020 with aggregate annual deal value doubling during the period, showed a KPMG report.

Further, the annual deal count has also increased by over 60 per cent, it showed. Median holding period of investments has doubled from 3.1 years in 2015 to 6.2 years in 2019.

"With the exception of sectors like telecom and utilities, PE investments have outperformed capital markets with an average IRR (internal rate of return) of 29 per cent," it said.

The report noted that these trends are indicative of sustained confidence in the India growth-story and a mature investing model of patient capital following high-growth companies with a proven track-record and a potential to transform.

Vikram Srinivas, Partner, Miamp;A Consulting, KPMG in India said "Though there is no single play-book on how a PE should manage its portfolio, in a competitive deal environment, what differentiates the best-in-class is their ability to bring in operational expertise, have an eye on the prize - five years ahead and become catalysts of growth to achieve that desired end-state"

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