Investments by private equity (PE) and venture capital (VC) funds increased 54% year-on-year to $6.9 billion in May, according to a report released by EY-IVCA on Tuesday.
Pure play PE/VC investments stood at $4.4 billion in May, 47% higher that $3 billion in May 2023 and 16% higher than April this year. The number of deals in May 2024 went up 45% y-o-y to 100 against 69 deals in May 2023, it said.
Investments in real estate and infrastructure in May 2024 went up 67% y-o-y to $2.5 billion compared with $1.5 billion in May 2023. It was 183% higher compared with April 2024, the report stated.
Growth investments were the highest deal type in May 2024 at $2.5 billion, accounting for 36% of the total PE/VC investments. This was followed by buyout investments at $2.3 billion. Real estate was the top sector in May 2024, recording $2.5-billion investments, followed by financial services ($1.6 billion).
PE/VC exits were at $2.5 billion across 23 deals in May 2024, a 21% growth y-o-y. Secondary exits were the highest in May 2024 at $1 billion across five deals, the report added.
The infrastructure sector continues to be favoured by PE and has attracted the highest investments in the last five years. It has been the most favoured sector by PE/VC and SWF (sovereign wealth fund) investors, accounting for 17% of the total PE/VC investments made in the last five years, it said. The renewable energy segment attracted the highest value of PE/VC investments, followed by roads and highways.
