PE on the rise
The fact that private equity (PE) investment at $16.7 billion in the first nine months of 2015 has already exceeded the $15.2 billion achieved in all of 2014 is a very good sign. While almost 25% of that has come from a few large deals, it is a clear indicator that there are people willing to put their money behind entrepreneurs with good business plans. In fact, according to the data sourced from Venture Intelligence, PE exits during the current calendar have also touched a record high at $6.8 billion, which is nearly double of $3.9 billion recorded in 2014, and, in fact, the best so far for PE exits. The fact that 2015 is the best year for PE investment in India after 2007 also shows that there is greater degree of optimism. That 67% of the total deals are in early stage funds is a clear indicator of future potential growth. Now that PE funds are positive on Indian investments, it is quite possible that they will be in a position to exit from investments sooner. Once that happens, it should lead to greater PE investments in the future. That will be the true test of the Indian entrepreneur. Now that there are positive signs from investors, it is time big industry also got into the picture.
Ratan Verma, Jaipur