India Private Equity Market Size

India Private Equity Market Analysis

The Indian private equity market is projected to register a CAGR of approximately 15% during the forecast period. The share of India in the global private investment market was valued at 2.2% during the period between 2015 and 2017. In 2019, significant investments in the infrastructure sector, which accounted for 35% of all private equity investments in India in 2019, provided momentum to the Indian private equity investment activity. The infrastructure sector witnessed rising demand for global buyouts and pension and sovereign funds. Furthermore, this trend is expected to remain strong in the near future. From a sector point of view, infrastructure (USD 803 million), real estate (USD 764 million), and financial services (USD 734 million) were the top three sectors, in terms of private equity investments, as of August 2019. Investments in the infrastructure and real estate sectors accounted for 35% of the total private equity investments in August 2019, as compared to 23% in August 2018. In 2019, the major deals included purchase of 9% stake in SBI Life Insurance by Carlyle Group, for about USD 652 million. This is one of Carlyle Group’s significant investments in India. Other significant deals included Baring Private equity purchase in NIIT Technologies and Brookfield Asset Management’s purchase of Pipeline Infrastructure. The infrastructure sector accounted for majority of the share in private equity investment, as of August 2019. Furthermore, Government of Singapore Investment Corp. invested in IRB Infrastructure's build–operate–transfer assets, for USD 622 million. Moreover, this deal is considered as one of the primary investments in the infrastructure sector, by a single sovereign wealth fund. The consumer tech and banking, financial services, and insurance (BFSI) remained the largest industrial sectors for investment, in terms of value. BFSI (banking, financial services, and insurance) remained the dominant industrial sector, with investments worth more than USD 5 billion in 2018. This was primarily driven by the rising class of non-banking financial companies (NBFCs), which impacted the growth of the ecosystem.