PE/VC roundup November 2024

A snapshot of PE/VC activity during November 2024.

According to the IVCA-EY monthly PE/VC roundup, PE/VC investments in November 2024 were 15% lower than October 2024.

Investments

PE/VC investments in November 2024 totalled US$4 billion, a156% increase compared to November 2023 (US$1.6 billion) but 15% lower than in October 2024 (US$4.7 billion). In terms of deal volume, November 2024 saw a 47% increase, with 87 deals compared to 59 in November 2023.

November 2024 recorded 11 large deals (valued at over US$100 million), aggregating US$3.2 billion—a 222% increase in value from November 2023 (US$1 billion across six deals) and 3% lower than October 2024 (US$3.3 billion across nine deals). The largest deal of the month involved PAG acquiring a majority stake in Manjushree Technopack for approximatelyUS$1 billion.

Buyout investments led in November 2024, with US$1.6 billion invested across five deals—a significant increase from US$217 million across three deals in November 2023, representing 613% growth. Start-up investments were the second largest, with US$1.1 billion invested across 49 deals in November 2024—a 95% increase compared to US$553 million across 39 deals in November 2023. PIPE investments ranked third, at US$578 million across 19 deals, reflecting 662% growth compared to November 2023 (US$76 million across six deals). Credit investments totalled US$432 million across four deals, a 3% increase from November 2023 (US$420 million across five deals). Lastly, growth investments stood at US$394 million across 10 deals, up 27% from November 2023 (US$311 million across six deals).

From a sector point of view, industrial products was the top sector in November 2024, attracting US$1 billion in PE/VC investments, followed by financial services and e-commerce (US$723 million and US$550  million respectively). These sectors, combined, accounted for 57% of total PE/VC investments in November 2024.

Spotlight: PE/VC trends in the real estate sector

Since 2019, the real estate sector has attracted PE/VC investments, totalling US$40.3 billion across 456 deals, accounting for 12% of overall PE/VC investments. This positions real estate as the third most attractive sector for PE/VC investors, following infrastructure (US$55.7 billion) and financial services (US$40.3 billion).

The year 2023 marked a historic milestone for real estate investments, achieving an all-time annual high of US$8.5 billion within the sector. As of now, 2024 has emerged as the second-best year for the sector, with investments already reaching US$7.2 billion with one month remaining, indicating sustained momentum in the sector. In terms of the number of deals, 2024 has recorded the highest deals in the sector so far (105 deals).

PE/VC investments in real estate continue to be dominated by the commercial segment, accounting for one-third of the dollar value of investments (US$13.7 billion). The rising demand driven by e-commerce growth and the expansion of the retail sector has spurred a significant need for logistics and warehousing infrastructure. This has made emerging sub-sectors like logistics parks and data centers increasingly attractive to PE/VC investors, collectively attracting investments worth US$6.1 billion. Following closely, the residential and developer segments have also secured substantial investments, drawing US$5.4 billion and US$5.3 billion, respectively, reflecting robust growth across diverse real estate categories.

Currently, data centers are attracting significant interest from PE funds, which are evolving as an alternate asset class for diverse real estate portfolios. Hyperscale data centers are being developed by reputed Indian real estate developers in partnership with global operators and PE investors.

PE/VC investments within the real estate sector have predominantly taken the form of buyout and growth transactions, with investors seeking ownership of yield-generating assets. These strategies accounted for 46% and 29%, respectively, together representing a substantial 75% of all real estate investments. "The surge in real estate investments can be primarily attributed7 to large deals exceeding US$100 million, which accounted for 77% of overall investments in the real estate asset class (US$30.9 billion across 102 deals). Notably, these large deals were concentrated in the commercial, developer, residential and data center segments.

Despite the challenges faced by the office market during 2020 and 2021 due to the COVID-19 pandemic and subsequent lockdowns, the segment is witnessing a strong recovery. The adoption of hybrid work models has rejuvenated demand for office spaces. This resurgence is further fuelled by the growth of IT/ITES sectors, the expansion of corporates, and the rapid rise of start-ups, driving a renewed focus on modern and flexible office infrastructure.

Tax benefits for first-time home buyers have bolstered demand for affordable housing. In response, developers are increasingly turning their attention to Tier II and Tier III cities, aiming to capitalize on the growing and largely untapped market potential in these regions.

E-commerce expansion has created investment opportunities in logistics parks and the warehousing segment.

Additionally, the rise of data centers driven by high data consumption in India and evolving data localisation policies have further enhanced the prospects of the data center asset class.

Overall, investor confidence in the Indian real estate market is rising and with the sector’s future looking highly promising-fuelled by strong economic growth and urbanization, it is expected to continue being a significant contributor to the country’s GDP.

Exits

November 2024 recorded 15 exits worth US$3.7 billion, compared to US$1.2 billion across 22 exits in November 2023, marking 200% year-on-year growth.

PE-backed IPOs contributed US$1.2 billion across five IPOs, accounting for 34% of overall exits in November 2024.

The largest exit in November involved Advent selling its majority stake in Manjushree Technopack to PAG for US$1 billion.

Fundraise

Total fundraises in November 2024 reached US$1.1 billion across eight funds, compared to US$401 million raised across six funds in November 2023.

Alpha Alternatives raised US$450 million, making it the largest fundraise in November 2024.