PE, VC deals dip 15% to $8.47 bn in Jan-Jun: PwC

Private equity and venture capitalist deals saw 15 per cent decline in the first six months of this year to USD 8.47 billion, owing largely to muted activity in the e-commerce space, says PwC.

There were PE/VC investments worth USD 8.47 billion across 333 deals, a 15 per cent drop in deal value and 18 per cent fall in number of deals, as against USD 10 billion of investments across 404 deals during the first half of 2015.

Because of over valuation and profitability concerns, there was dearth in e-commerce/consumer internet investments segment, PwC said, adding that "some of this was the spiral impact of the slowdown in valuations of some of the overseas peers, and a slow-down in investments by the early stage investors".

Energy and healthcare sectors, which contributed USD 1,908 million and USD 1,199 million in deals in the first half of last year saw drop in numbers to USD 960 million and USD 687 million in the January-June period of this year.

However, investor interest in healthcare, renewables and the financial services sector continues to be high, PwC India, Leader Private Equity, Sanjeev Krishan said.

He added that there are a number of assets of scale in the market, in particular in the renewables and the healthcare sectors which should drive PE volumes in the second half of this year.

Optimism about the opportunity for private equity in India remain bullish, PwC said. "The Indian macros continue to look good and the Economy has shown resilience in the face of some adverse news during first half," it said.

Moreover, there are likely to be consolidation opportunities in the consumer internet segment as well as stressed situations in the infrastructure and industrials space -- good for PE funds.