New Delhi, January 5, 2010: Four-S Research and Indian Venture Capital Association (IVCA) data for the calendar year 2009, released today, shows a significant 62.2% decline in private equity investments. PE investment in 2009 is down to $4.22bn across 249 deals (including secondary market transactions) compared to $11.16bn from 344 deals during the corresponding period last year.
Announcing the year-end review, Mr Mahendra Swarup, President, India Venture Capital Association, said, “While the overall trends bear the impact of global recession, private equity investors have found better value in the Infrastructure and Real Estate sectors of the Indian economy. ”
According to Satyendra Shukla, CEO of leading research firm, Four-S Research Pvt Ltd, “Continued impact of the general slowdown, valuations mismatch & cautious play by investors has been the primary reasons for the low PE activity during the year.”
IVCA-Four-S Private Equity Investment Synopsis – 2009 – Key Highlights:
* Data according to all publicly disclosed information
^ Subsequent open market exits made by a PE from the same company during the year, have been consolidated & taken as one single exit
Four-S Research is the research arm of finance & consulting firm Four-S Services Pvt Ltd, a seven year old firm with wealth of experience in research & financial consulting. The firm provides customized services for leading PE players & companies looking for Investment advisory services. Four-S has been actively tracking the Indian PE sector and has published 3 successful annual editions of “Four-S India Private Equity Report” and a weekly newsletter – ‘Four-S Private Equity Track’. Four-S is also the official knowledge partner to the IVCA.
Indian Venture Capital and Private Equity Association (IVCA) is a member based national organization that represents venture capital and private equity firms, promotes the industry within India and throughout the world and encourages investment in high growth companies.
IVCA members comprise venture capital firms, institutional investors, banks, incubators, angel groups, corporate advisors, accountants, lawyers, government bodies, academic institutions and other service providers to the venture capital and private equity industry.
Members represent most of the active venture capital and private equity firms in India. These firms provide capital for seed ventures, early stage companies, later stage expansion, and growth finance for management buyouts/buy-ins of established companies.