PE investment declines 23 percent during 2008
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Bangalore: The fall in the capital market mirrored itself in corporate India's private equity (PE) transactions, which, registering a 23 percent decline during 2008, stood at $10.59 billion (Rs51,785 crore) because of an economic downturn. According to Grant Thornton's latest annual issue, there were 312 deals in 2008 with a total announced value of $10.59 billion, compared to 405 deals with an announced value of $19.03 billion in 2007. Although this portrays a gloomy picture about the investment scenario in the country, Preqin, a research firm predicts that private equity investment scene is expected to catch up again from the second-half of 2009 and play a pivotal role in global economic recovery, as fund houses are sitting on about one trillion dollar of reserves. While PE funds could raise significant amounts in the first half of 2008, there was a slowdown in fund raising activities in the third and fourth quarters. Last year also saw 'Buy-out Funds' as the biggest fundraiser as 170 companies aggregated $216 billion, followed by real estate funds that saw 166 funds closing to raise an aggregate of $117 billion. Prominent deals in 2008 include a $50 million investment by Blackstone in Hyderabad-based Nuziveedu seeds and Morgan Stanley's investment in castor oil maker Biotor Industries.

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