PE returns gather pace
48 percent of all exits since 2003 took place in past three years: McKinsey report
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Last Updated: Dec 04, 2018, 11:53 IST1 min
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“General Partners [GPs] have realised that exits aren’t easy in India. If you miss one cycle, you have to wait for three years. Hence, if it is an opportune time, GPs have started exiting partially to clock gains from their investments,” says Peeyush Dalmia, partner at Mckinsey & Co. “The market is evolving, and nearly 70 percent of deals are over $100 million. In fact, Indian markets are maturing and are managing to capture between 12 percent and 20 percent of the Asia-dedicated funds.”
As deal count fell by about 20 percent between 2015 and 2017 compared to 2012-2014, the number of deals higher than $100 million more than doubled to 245 deals. At the same time, the number of deals less than $25 million fell by 40 percent.
Also, as markets mature, fund managers have shied away from investing in peak bull markets. Over the past three years, PE exits grew faster as markets became more expensive, the result of fund managers becoming more disciplined about exits and less inclined to invest in an aging bull market.
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First Published: Dec 04, 2018, 11:53
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