2014 saw maximum number of private equity deals in last decade: Report

NEW DELHI: The year 2014 saw 604 private equity deals, the highest number of transactions in the past decade, on the back of increase in investments in technology enabled consumer space including e-commerce, says a report.

According to the third edition of Grant Thornton's 'The Fourth Wheel' -- a publication on PE in India produced in association with IVCA, PE investment in India is growing steadily since 2009, and stood at over $12 billion in 2014 alone.

"Today dynamic companies seek private equity funding not just for capital but the significant value addition they bring to the business and their ability to drive growth and value," Grant Thornton India LLP Partner Harish HV said.

He said: "PE players are in the forefront of creating new businesses particularly in the tech and e-commerce space, which is making some fundamental changes in the way business and economy function."

The report said that IT&ITES has attracted maximum investments worth $13 billion from over 900 deals in the last decade, followed by banking and financial services and pharma sector with 331 and 298 deals respectively.

Furthermore, e-commerce topped the PE investment charts in 2014 and the wave is expected to result in consolidation trends in 2015 within the segment.

The report says that IT/ITES and retail & consumer sectors will continue to see upward trend while banking and financial services (BFS), real estate and infrastructure (REI) and pharmaceuticals are expected to be attractive opportunities in 2015.