PE, VC investments touch all-time high of $12.9 billion in October: Report

Private equity (PE) and venture capital (VC) investments touched an all-time high of $12.9 billion in October, on the back of high-value deals, a report said on Tuesday. The investments were 71% higher as compared with October 2020’s $7.5 billion and 2.5 times the $5.2 billion value recorded in September this year, the report by consultancy firm EY and industry lobby IVCA said.

By the number of transactions, the 127 deals in October were higher than the 92 in last October but lower when compared with September’s 134.

“The PE/VC deal activity is on a roll in 2021, significantly exceeding the previous all-time highs. Year-to-date October 2021, PE/VC investments have recorded $65.6 billion, 38% higher than the previous annual high recorded in 2020,” the firm’s partner Vivek Soni said.

There were 21 large deals of over $100 million each in October aggregating to $10.9 billion, it said.

These included the $3-billion buyout of Hexaware Technologies by Carlyle, followed by Blackstone’s buyout of VFS Global Services for $1.9 billion.

Pure-play PE/VC investments, which exclude investments in real estate and infrastructure, also recorded the highest-ever monthly value at $12.1 billion, almost 2.5 times the value recorded in October 2020 ($4.8 billion) and September 2021 ($4.7 billion).

Buyouts were the highest in terms of value in October 2021 at $6 billion across six deals, it said adding that start-up investments were at $3.8 billion across 97 deals.

October 2021 recorded 24 exits worth $5.1 billion compared with the $288 million recorded in October 2020 and $2.5 billion recorded in September 2021.

Total fundraises of $70 million were recorded as compared with $1.5 billion raised in October 2020 and $740 million raised in September 2021.