Private equity players expect a moderate increase in deal activity in India during 2013 with healthcare emerging as the top pick for these investors, a survey said.
“Expectations about deal activity in 2013 remain cautious but still positive on the whole. Our interviews suggest that deal activity will see moderate growth in 2013 throughout the industry. The steps taken towards improving India’s legislative framework have made investors a bit more upbeat , and general partners suggest that more deals will close in 2013,” Bain & Co and IVCA said in the India Private Equity Report.
Last year, there was a mere 4% rise in the number of deals, reflecting the cautious mood of investors in the wake of political uncertainty and concerns over the India growth story. Although the mood has improved, investors appear only marginally upbeat. “Private equity funding will only grow in India if the policy framework is supportive. Policymakers need to be quick and decisive in creating new legislation,” the report said.
Source: Times of India