PE/VC to go slower in '08; look to rebound in '09

NEW DELHI, INDIA: Global economic slowdown hit them too in 2008, but private equity and venture capital investors, who usually help shape new business ideas, are looking to bounce back in 2009 by capitalising on the dearth of traditional fund-raising routes such as IPOs and debts.

Indian entrepreneurs received a significant $11.3 billion of PE and VC investments in 2008, but it was still lower by about a quarter from close to $15 billion in 2007.

After a subdued year, the investors and market experts are expecting the PE and VC investments to pick up next year as raising debts have become costlier and IPOs are not finding any takers and the dampened investor sentiments might finally start improving on the back of efforts made by the government.

According to Venture Intelligence, a research firm tracking PE and VC investments, there have been 382 private equity deals worth $10.6 billion this year, as against 439 deals worth $14.1 billion in 2007.

At the same time, VC investments into Indian firms have declined to $733 million with 122 deals so far this year, from 142 deals worth $874 million in 2007.

Source: PTI