PE/VC investments drop 42% to $4 billion in November

Investments by private equity and venture capital funds have declined by 42 per cent year-on-year to USD 4 billion in November, a report said on Friday.

However, compared to the preceding month of October, investments have increased by 18 per cent, the report by industry lobby IVCA and EY, a consultancy, said, adding this is the second sequential rise in monthly investments.

"A significant gap in the bid/ask spreads was the main factor slowing down deal closure activity in 2Q (April-June) and 3Q 22 (July-September) as a result of which large deals got delayed and companies raised smaller rounds to minimise dilution," EY's partner Vivek Soni said.

By the number of deals, November's 88 transactions were 15 per cent lower than the year-ago period and 13 per cent higher than the preceding October.  When looked at from a deal type perspective, buyouts were the highest in terms of value in November 2022 at USD 1.8 billion across four deals compared to USD 1.5 billion invested in five deals in November 2021, the report said.