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Business Standard
30-05-2025
- Business
- Business Standard
IVCA asks VCFs to act on Sebi circular, migrate to AIF regime by July 19
The Indian Venture and Alternate Capital Association (IVCA) has asked all Venture Capital Funds (VCFs) operating under the repealed Sebi (Venture Capital Funds) Regulations, 1996, to take note of migration rules introduced via Sebi's circular dated August 19, 2024. According the Sebi directive, VCFs with schemes whose liquidation period has not expired and VCFs with at least one scheme whose liquidation period has expired, but not wound up and continues to hold unliquidated investments, now have the option to migrate into the Alternative Investment Fund (AIF) regime under a newly introduced sub-category: Migrated Venture Capital Funds (MVCFs). The deadline for submitting applications for this is July 19, 2025. Rajat Tandon, president of IVCA, said, 'This is a critical regulatory window for legacy VCFs to realign with the current AIF framework. The migration framework introduced by Sebi not only offers operational clarity but also provides a structured path for managing residual assets and ensuring regulatory compliance. We urge all concerned VCFs to evaluate this option without delay. IVCA will continue to be the bridge between our members and Sebi, ensuring all necessary support is available throughout the migration process.' Despite the regulatory clarity and incentives provided under this framework, including a simplified re-registration process, fee waivers, and tailored compliance requirements, the response to the said scheme has been tepid, which is a cause for concern. IVCA has urged all legacy VCFs, especially those who are holding residual assets, to immediately evaluate their eligibility and apply to Sebi for migration before the due date. VCFs requiring support or clarification may reach out to IVCA or directly contact Sebi at the earliest. Those VCFs who have wound up all schemes or schemes where no investment has been made are further urged to surrender their registration to Sebi. This transition is aimed at creating a more consistent and robust framework for fund governance, investor protection, and asset resolution. IVCA remains committed to supporting its members and the broader ecosystem during this important phase.
Economic Times
07-05-2025
- Business
- Economic Times
India PE-VC market rebounds in 2024 to $43 bn; VC, growth investment spur momentum
After two years of shrinking, India's private equity and venture capital (PE-VC) investments sprung back in 2024, growing about 9 per cent to reach USD 43 billion across nearly 1,600 deals, and outlook for 2025 remains cautiously optimistic, a latest report said on Wednesday. ADVERTISEMENT The 2024 rebound, primarily fuelled by VC and growth investments while PE dealmaking remained steady, were part of insights in Bain & Company's 'India Private Equity Report 2025', released in collaboration with the Indian Venture and Alternate Capital Association (IVCA). "After two years of contraction, India's private equity and venture capital (PE-VC) investments staged a recovery in 2024, growing by approximately 9 per cent to reach USD 43 billion across close to 1,600 deals, with traditional sectors taking the lead in driving market growth," it said. The recovery strengthened India's position as Asia-Pacific's second-largest PE-VC destination, capturing about 20 per cent of the total investment and reflecting growing investor confidence in the country's macroeconomic stability. While India's overall increase was primarily driven by VC and growth investments, PE investments maintained stability at USD 29 billion, as funds navigated high valuations in buoyant public markets, making deal closures more challenging. "We are seeing a clear shift towards buyout deals, with their share of overall PE deal values rising to about 51 per cent in 2024 from about 37 per cent in 2022. This reflects a strategic emphasis on securing control positions in high-quality assets across sectors, enabled in part by record dry powder, and signals that buyouts could remain central to PE activity as funds seek scalable value creation opportunities," Prabhav Kashyap, Partner at Bain & Company, said. ADVERTISEMENT Real estate and infrastructure, and select traditional sectors like IT/ITeS, financial services, healthcare-led funding. Other traditional sectors (such as energy, manufacturing) eased after growing for two years, with a subdued year for deal closures amid high valuations driven by public markets and increased competition. Real estate and infrastructure led the pack at 16 per cent of total PE-VC investment clocking in an approximately 70 per cent surge in deal value over the previous year. Financial services saw a robust growth of about 25 per cent, driven by NBFCs, especially in affordable housing finance, with 14 deals, including seven USD 100 million-plus transactions in 2024, it said. ADVERTISEMENT Healthcare funding remained resilient and showed "impressive momentum" with an 80 per cent rise in deal volumes, supported by large medtech transactions such as Healthium and Appasamy, increased investments in pharma CDMOs, and continued growth in provider deals. The IT and IT-enabled services sector recorded "extraordinary growth" of about 300 per cent, led by major deals including Perficient (USD 3 billion), Altimetrik (USD 900 million), and GeBBS (USD 865 million), with significant activity in revenue cycle management investments. ADVERTISEMENT The year 2024 also marked a watershed year for exits. India exits surpassed all other markets in Asia-Pacific with values reaching an impressive USD 33 billion, representing a 16 per cent year-over-year growth. Investors increasingly looked at buoyant public markets to exit maturing positions. ADVERTISEMENT Public market exits gained prominence, increasing their share from 51 per cent of total exit value in 2023 to 59 per cent in 2024, driven by heightened IPO activity and successful block trades. The market witnessed 33 IPOs compared to 23 in 2023, with consumer-focused sectors dominating close to 55 per cent of total IPO value, demonstrating strong investor appetite for consumer-centric businesses. The domestic fund-raising landscape reached new heights in 2024. Kedaara Capital set a new benchmark by closing its largest-ever fund at about USD 1.7 billion, while ChrysCapital is said to have raised a record USD 2.1 billion. The 2025 outlook remains cautiously optimistic, underpinned by several positive macroeconomic indicators, including strong GDP growth trajectory alongside cooling inflation; robust private consumption growth; impressive rural demand growth; and strategic policy measures, including the first interest rate cut in five years.
Time of India
07-05-2025
- Business
- Time of India
India PE-VC market rebounds in 2024 to $43 bn; VC, growth investment spur momentum
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Live Events After two years of shrinking, India's private equity and venture capital (PE-VC) investments sprung back in 2024, growing about 9 per cent to reach USD 43 billion across nearly 1,600 deals, and outlook for 2025 remains cautiously optimistic, a latest report said on 2024 rebound, primarily fuelled by VC and growth investments while PE dealmaking remained steady, were part of insights in Bain & Company's ' India Private Equity Report 2025', released in collaboration with the Indian Venture and Alternate Capital Association ( IVCA )."After two years of contraction, India's private equity and venture capital (PE-VC) investments staged a recovery in 2024, growing by approximately 9 per cent to reach USD 43 billion across close to 1,600 deals, with traditional sectors taking the lead in driving market growth," it recovery strengthened India's position as Asia-Pacific's second-largest PE-VC destination, capturing about 20 per cent of the total investment and reflecting growing investor confidence in the country's macroeconomic India's overall increase was primarily driven by VC and growth investments, PE investments maintained stability at USD 29 billion, as funds navigated high valuations in buoyant public markets, making deal closures more challenging."We are seeing a clear shift towards buyout deals, with their share of overall PE deal values rising to about 51 per cent in 2024 from about 37 per cent in 2022. This reflects a strategic emphasis on securing control positions in high-quality assets across sectors, enabled in part by record dry powder, and signals that buyouts could remain central to PE activity as funds seek scalable value creation opportunities," Prabhav Kashyap, Partner at Bain & Company, estate and infrastructure, and select traditional sectors like IT/ITeS, financial services, healthcare-led funding. Other traditional sectors (such as energy, manufacturing) eased after growing for two years, with a subdued year for deal closures amid high valuations driven by public markets and increased estate and infrastructure led the pack at 16 per cent of total PE-VC investment clocking in an approximately 70 per cent surge in deal value over the previous year. Financial services saw a robust growth of about 25 per cent, driven by NBFCs, especially in affordable housing finance, with 14 deals, including seven USD 100 million-plus transactions in 2024, it funding remained resilient and showed "impressive momentum" with an 80 per cent rise in deal volumes, supported by large medtech transactions such as Healthium and Appasamy, increased investments in pharma CDMOs, and continued growth in provider IT and IT-enabled services sector recorded "extraordinary growth" of about 300 per cent, led by major deals including Perficient (USD 3 billion), Altimetrik (USD 900 million), and GeBBS (USD 865 million), with significant activity in revenue cycle management year 2024 also marked a watershed year for exits surpassed all other markets in Asia-Pacific with values reaching an impressive USD 33 billion, representing a 16 per cent year-over-year growth. Investors increasingly looked at buoyant public markets to exit maturing market exits gained prominence, increasing their share from 51 per cent of total exit value in 2023 to 59 per cent in 2024, driven by heightened IPO activity and successful block market witnessed 33 IPOs compared to 23 in 2023, with consumer-focused sectors dominating close to 55 per cent of total IPO value, demonstrating strong investor appetite for consumer-centric domestic fund-raising landscape reached new heights in 2024. Kedaara Capital set a new benchmark by closing its largest-ever fund at about USD 1.7 billion, while ChrysCapital is said to have raised a record USD 2.1 2025 outlook remains cautiously optimistic, underpinned by several positive macroeconomic indicators, including strong GDP growth trajectory alongside cooling inflation; robust private consumption growth; impressive rural demand growth; and strategic policy measures, including the first interest rate cut in five years.
Time of India
07-05-2025
- Business
- Time of India
IPO exits may take a hit amid slowdown
Mumbai: With some companies looking to delay their public listings amid a choppy market, investor exits through IPOs are likely to take a hit this year after recording a big jump in 2024, a joint report by Bain & Company and IVCA (Indian Venture and Alternate Capital Association) said, hinting at a slowdown in broader PE-VC ( private equity and venture capital ) deal activity amid tariff-feuled global uncertainty. "...corrections in Indian public markets since Q4 2024 could potentially temper the IPO exit momentum," analysts value of IPO exits more than doubled to nearly $4 billion in 2024 from $1.8 billion in 2023 as more firms went public last year, riding on a buoyant market, giving investors enough opportunity to cash number of IPO filings so far this year has been lower compared to the same period last year and for companies facing pressure from investors to give them an exit, reduction in issue size and valuation readjustments are on the table as bigger IPOs may not sail through in a volatile market. "From an LP (limited partner) perspective, the exit is a very important path for them to be able to get liquidity. LPs are not seeing the kind of cash they would like to, and for certain funds, there's no choice but to go ahead and seek an exit. Some companies hence are looking at cutting the issue size and tempering IPO valuations," Prabhav Kashyap, partner at Bain & Company told a bull run last year, activity in India's IPO market has slowed, with companies like LG Electronics delaying listing plans for its India Tuesday, EV startup Ather Energy fell nearly 6% from its issue price following a muted listing. Urban Company, which recently filed draft IPO papers, slashed the size of its IPO to Rs 1,900 crore from the earlier targeted Rs 3,000 crore, with the offer for sale (OFS) component that gives exit to investors forming the bulk of the PE-VC investments rebounded in 2024 after two years of contraction. Investments increased by about 9% year-on-year to $43 billion, helped by growth in VC deals (in terms of volumes). The broader deal environment this year remains cautious, with investors betting more on companies that have higher exposure to local markets. "Deal activity is always impacted when there's any kind of uncertainty. In the case of sectors like manufacturing and pharmaceuticals, investors are assessing the potential impact from tariffs. There is a slowdown in overall investments. The big deals that have been announced this year were in the works and have only been closed now," Kashyap added.
Reuters
13-02-2025
- Business
- Reuters
Financial services, IT will be most attractive for PE buyouts in 2025, industry group head says
BENGALURU/NEW DELHI, Feb 13 (Reuters) - India's financial services and IT sectors will be the most attractive sectors for private equity buyouts this year, the head of the Indian Venture and Alternate Capital Association told Reuters this week. This is a marked shift from 2024 when real estate and healthcare were the most sought-after sectors for PE buyouts with $4.3 billion and $2.9 billion worth of takeover deals completed, respectively, EY and IVCA data showed. "When we come in and buy out a company, we don't want to run the business ourselves. It is easier to do it in sectors like these, which are more service-oriented," said Ashley Menezes, who is also the operating chief of PE firm ChrysCapital. India reported a 39% jump in PE and venture capital buyouts to $16.8 billion in 2024, according to a report by EY and IVCA. The takeover of telecom tower operator ATC India by Brookfield for $2.5 billion, the sale of packaging firm Manjushree Technopack to U.S. PE firm PAG for about $1 billion, and Shriram Housing Finance's sale to Warburg Pincus for $555 million were among the top Indian buyouts last year. Menezes also said that the current pattern of companies gearing up for initial public offerings is a positive for PE and VC firms. "Whether it's building up an independent board or just other corporate governance practices, (preparing for an IPO) just gears them to be a lot more attractive to a merger or a PE acquisition opportunity even if an IPO doesn't happen," he said. Indian IPO volumes were the highest globally in 2024. Ninety-one large firms went public on Indian exchanges last year, raising a record 1.6 trillion rupees ($18.4 billion), data from Prime Database showed. ($1 = 86.8800 Indian rupees)
