Private equity investment to touch $40 billion by 2025

Mumbai: The annual private equity investment in India is poised to touch $40 billion by 2025 as a revival in economic growth and investment cycle are expected to fuel a large number of deals in the domestic market.

According to a study by PWC, while venture and growth opportunities would continue to attract PE investments, buyout of the entire promoter stake would be the biggest investment theme over the next decade as India Inc deleverages and exists non core businesses.

Over the next ten years, PE deals, both in size and nature, will increasingly turn closer to those in some developed countries with potential to reach $40 billion in 2025 in India. “Consumer centric businesses have been big themes for equity investors over the last few years.

While this will continue, Indian consumerism is expected to embrace the rural markets as well over the next five years, as growth reaches the interiors of the India. Though, consumer centric businesses would see more activity in the near term, realty sector would form a larger component,” said Sanjeev Krishnan, leader, private equity, PWC India.

While a large number of Indian businesses have scaled up over the last investment cycle through venture capital, PwC pointed out that these firms are finding the next level of growth an uphill task due to the lack of management skills.