PE/VC investments record 60% growth sequentially in October

Private equity (PE) and venture capital (VC) investment in October 2022 was $3.3 billion, 60 percent higher than the level recorded in September 2022, buoyed by the $960 million Bain Capital – CitiusTech deal.

However, year-over-year (YoY), total PE/VC investment for the month under review was 75 percent lower than the record investment of $13.1 billion in October 2021, on the back of large deals, most recently The IVCA-EY Monthly Report on PE/VC for October 2022 is presented.

The largest deal in October 2022 saw Bain Capital invest $960 million in CitiusTech for a 40 percent stake.

In terms of the number of deals, October 2022 recorded 75 deals, down 43 percent year-on-year (132 deals in October 2021) and on par with September 2022 deals.

investment momentum

Problems with inflation, recession, rising cost of capital, and rising levels of uncertainty stemming from geopolitical tensions have put pressure on PE/VC activity in 2022, both globally and locally. In India, investment momentum, both in terms of volume and number of deals, has slowed considerably.

October 2022 recorded six large deals (deals worth over $100 million) totaling $2.2 billion, which is a sharp drop from the 24 large deals worth $11.3 billion recorded in October 2021. The previous month had only four large deals worth $906. Millions of dollars.

By type of deal, growth investments were the highest in terms of value in October 2022 with $2 billion invested across 13 deals, compared to $1.7 billion invested through 13 deals in October 2021 and $502 million invested through 16 deals in September 2022. Corporate investments recorded Startups generated $583 million through 46 deals in October 2022 compared to $4 billion recorded through 100 deals in October 2021 and $938 million invested through 43 deals in September 2022.

Overall purchases recorded $472 million through four deals in October 2022 compared to $6 billion through six deals in October 2021 and $81 million through three deals in September 2022.

Vivek Soni, Partner and National Leader of Private Equity Services, EY, said: “October 2022 recorded $3.3 billion in PE/VC investments, 75 per cent less than investments in October 2021, which was a record month. Over the past five months, PE/VC investments have recorded a sequential rise in October 2022, with an increase of 60 percent.”

October 2022 recorded 15 exits worth $1.6 billion, a significant improvement over the previous month which recorded $653 million across 24 deals.

growth rate

The healthcare sector ranked first in October 2022, with $977 million in private equity/venture capital investments across three deals. The financial services sector came second, recording $216 million across 13 deals. Traditionally, preferred sectors such as technology and e-commerce have recorded a 90 percent year-over-year decline in PE/VC investments.

Many investors are now focusing on value play, a marked shift from last year, when growth was the primary focus. While many startups have already embarked on the path of preserving liquidity, growth rates are expected to be negatively affected.

“We expect an uptick in M&A within the startup space in the coming months. On the PE side, valuations or bid-ask spreads continue to be the main factor slowing deal closing activity. Over the next three to four months, we expect that This is improving as sellers and investors alike find balance.Soni added that the Indian economy continues to outperform other emerging markets and while there may be short-term volatility, the private equity/VC community remains optimistic about growth prospects on long term in India.

2022 emerged as India’s best year for PE/VC credit investments, registering $3.2 billion. Credit investments in 2022 so far are 5 percent higher than the previous record in 2019.

Four sectors – financial services, real estate, infrastructure and e-commerce – accounted for nearly 80 percent of all credit investments between 2017 and 2022 (January-October).


October 2022 recorded a total fundraising of $2.2 billion, compared to $70 million raised in October 2021. The biggest fundraising was from Motilal Oswal, which raised its fourth fund of $549 million, all raised from local high-net-worth individuals (HNIs). ) and family offices.