PE, VC deals contract sharply in May to $2.4 billion

PRIVATE EQUITY AND venture capital deals recorded a sharp contraction in May, with total investments plummeting 68% year-on-year to just $2.4 billion, according to a report by the Indian Venture and Alternate Capital Association (IVCA) and EY.

- FE BUREAU

This marked the weakest monthly performance in at least a year, as geopolitical uncertainty, valuation mismatches, and cautious investor sentiment suppressed deal activity.

The report said only 97 deals were completed during the month, a 24% decline from May 2024, with large transactions above $100 million particularly scarce. Just six such deals were recorded, collectively worth $941 million, marking an 83% drop from the $5.6 billion in large deals seen during the same period last year. Even when compared to April, large deals are down 75% in terms of value.

The largest deal recorded during May was Ares Management's $216 million debt funding in Bengaluru-based Century Real Estate, where it led the round with SC Lowy, a Hong Kong-based hedge fund.