Private Equity and Venture Capital Investments Surge Despite Economic Challenges

Investments by the private equity and venture capital industry increased to USD 56 billion in 2024, reversing a two-year decline. Despite challenges and uncertainties expected this year, the industry shows cautious optimism. Deal volumes surged, though new fundraises declined significantly, highlighting capital market influences.

Investments in the private equity and venture capital sectors have risen by 5% to USD 56 billion in 2024, marking a turnaround after two years of decline, a new report reveals.

The year is predicted to be challenging, with many uncertainties anticipated, according to a report released by the Indian Venture Capital Association (IVCA) and consultancy firm EY.

Significant factors, such as the policies of the new US government, could affect global trade and have a substantial macroeconomic impact on India, according to Vivek Soni, a partner at EY. Despite this, there is cautious optimism in the market with a noticeable surge in deal activity and a 254% increase in credit deals.

(With inputs from agencies.)