Private Equity Investment Rises 6% in FY25 Despite Fewer Deals
Real Estate

Private Equity Investment Rises 6% in FY25 Despite Fewer Deals

Private equity (PE) investments grew by 6% year-on-year to reach $2.82 billion in the first nine months of FY25, according to a report by ANAROCK. This growth came despite a drop in the number of PE deals, which declined from 30 in the same period of FY24 to 24 in FY25.

Shobhit Agarwal, MD & CEO of ANAROCK Capital, noted that the average deal size rose significantly by 32.5%, increasing from $88.5 million in April-December FY24 to $117.3 million in April-December FY25. The rise was attributed to large-scale transactions, with the top 10 deals accounting for 93% of total PE investments.

The industrial and logistics sector dominated the market, capturing 62% of total investments, far outpacing the office and residential sectors, which accounted for 14% and 15%, respectively. Among cities, Bengaluru and Hyderabad emerged as leaders in deal activity, with 11% and 10% shares, respectively.

In the residential sector, PE investment rose to 15% from 12% in the previous year. However, geopolitical uncertainties and high interest rates dampened PE activity in commercial real estate, despite strong leasing trends.

The funding split between domestic and foreign investors remained consistent with previous years, indicating steady interest across both segments.

(ET)
                   

Private equity (PE) investments grew by 6% year-on-year to reach $2.82 billion in the first nine months of FY25, according to a report by ANAROCK. This growth came despite a drop in the number of PE deals, which declined from 30 in the same period of FY24 to 24 in FY25.Shobhit Agarwal, MD & CEO of ANAROCK Capital, noted that the average deal size rose significantly by 32.5%, increasing from $88.5 million in April-December FY24 to $117.3 million in April-December FY25. The rise was attributed to large-scale transactions, with the top 10 deals accounting for 93% of total PE investments.The industrial and logistics sector dominated the market, capturing 62% of total investments, far outpacing the office and residential sectors, which accounted for 14% and 15%, respectively. Among cities, Bengaluru and Hyderabad emerged as leaders in deal activity, with 11% and 10% shares, respectively.In the residential sector, PE investment rose to 15% from 12% in the previous year. However, geopolitical uncertainties and high interest rates dampened PE activity in commercial real estate, despite strong leasing trends.The funding split between domestic and foreign investors remained consistent with previous years, indicating steady interest across both segments.(ET)                   

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