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04-07-2012, 10:01 AM #1
PE investments plunge in March quarter
Private equity (PE) investment fell to $1.88 billion across 90 deals during the quarter ended March this year, less than half compared to the same period last year.
This was the third consecutive quarter of deceleration, says a report from research firm Venture Intelligence.
During the first quarter of calender year 2011, private equity firms had invested $3.61 billion across 107 transactions.
Venture Intelligence said there has been a dearth of mega deals during the quarter, which was the main reason behind the decline in the overall PE deal activity .
There were six reported PE investments worth over $100 million and none above $200 million during the quarter ended March, compared to 9 such deals in the same period last year, which included 5 transactions over $ 200 million.
Healthcare and life sciences cornered bulk of PE investments as the sector attracted $581 million (31 per cent of the value pie) across 14 investments during the period.
Three of the six investments worth over $100 million each during the quarter went into the hospitals and clinics sector. About $110 million was infused into Care Hospitals (by Advent International) and $100 million each invested into DM Healthcare and Vasan Healthcare (by Olympus Capital and by the Singapore Government-owned GIC, respectively).
Healthcare was followed by IT & ITEs companies with $308 million across 35 reported investments and BFSI (banking, Financial Services and Insurance) firms with $280 million across 11 investments.