Buyouts gain pace as PE investors seek control

PRIVATE EQUITY INVESTORS in India are increasingly favouring buyouts as they seek greater control and operational influence, driving a sharp rise in both deal value and volume.

- S SHANTHI

According to a recent EY report, average annual buyout investments rose 52% to $14.2 billion during 2021-2025, compared with $9.3 billion in 2016-2020. The average number of transactions also increased 30% to 56 deals from 43 over the same period.

The shift reflects a maturing market where a growing pool of cash-generative businesses is becoming available for full or majority stake sales. EY said that founders, families and early investors are increasingly open to meaningful exits, often linked to succession planning, portfolio restructuring or professionalisation.This is creating a pipeline of assets where promoters are willing to cede control.