The year 2009 was another challenging year for private equity (PE) investments in India thanks largely to the aftershock of the credit crisis and mirroring a global trend. PE investments declined for the second straight year to a four-year low of $3.8 billion, according to deal-tracking firm Venture Intelligence. Overall deal volumes and the size of investments, fund raising and exits dwindled considerably.
"It has been a difficult year for PE funds as volatility in public markets and continued uncertainty around the ability to raise new funds caused investment activity to be muted in 2009," says Arun Natarajan, CEO, Venture Intelligence. However, Natarajan expects a rebound in PE investments in 2010, particularly in infrastructure, education and healthcare.