PE investments down 77.5% to $3.8 billion in Q3

Reflecting the overall decline in funds flows into startups especially since the Ukraine war, private equity investments plunged 77.5% to $3.84 billion in the September quarter, according to an industry report.

On a sequential basis, fund inflows declined 43.5% from $6.80 billion in the June quarter and a massive 77.5% from $17.05 billion in the September 2021 quarter, according to the data collated by Refinitiv, an arm of the London Stock Exchange Group and a leading provider of financial markets data.

The number of deals also fell 14.6% to 408 from 478 on-year, but increased 14.6% from 356 in the June quarter.

On a year-to-date basis, private equity investments fell 33% in the first nine months of 2022 to $19.6 billion, the report said.

Internet-specific and computer software companies continued to attract funds, accounting for 68.6% of the private equity dollars so far this year.

Companies in these sectors attracted $7.47 billion down 51.8% on-year, and $5.96 billion down 29.3%, respectively during the first nine months of the year.

However, the number of deals in the inflows internet-specific sectors rose to 396 in the nine months period from 389.

Similarly, inflows into the financial services companies fell 25.7% while to industrials declined 12.4%. However, transportation saw inflows rising 56.8%, communications saw it soaring by 950.1%, and computer hardware got 197.4% more funds.

The top 10 PE deals during the nine months of 2022 included VerSe Innovation ($827.7 million), Think & Learn ($800 million) Bundl Technologies and Bharti Airtel ($700 million each), Tata Motors Electric Mobility ($494.7 million) Ntex Transportation Services ($330 million), Busybees Logistics Solutions ($324.7 million), Delhivery ($304 million), Renkube ($300 million) and EQX Analytics ($270 million).

Meanwhile, India-based PE funds raised $8.98 billion during the first nine months of 2022, up 123.5% from $4.02 billion. Domestic PEs are sitting over deployable funds of $26 billion now. PTI

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