India's private capital-backed exits are on a tear
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India saw $25 billion in private capital-backed exits in 2023 and $11.5 billion in the first half of 2024, according to new data from the Global Private Capital Association.
Why it matters: While the rest of the world — including the U.S. — has been struggling with a dearth of exits, deal value in India increased by 46% and deal count by 51%, year-over-year.
The big picture: The Indian exit boom is thanks to a few factors, namely favorable macro conditions and investor-friendly government policies, GPCA says. Plus, the rise of retail investors has boosted the public markets, Indian corporate acquirers have been active, asset managers have adopted continuation funds, and the rupee has been stable.
State of play: Exit levels across all categories in India have increased compared to pre-pandemic levels.
- "Despite a decrease in the number of strategic buyer exits in 2023, exit value grew, indicating larger deal sizes as Indian corporates play a more significant role," notes the GPCA.
- 2024 is also the highest first-half exit level (excluding the market peak of 2021) despite no transaction being over $1 billion, highlighting a breadth of activity.
- The GPCA also reports that since 2020, "India has accounted for 58% of total private capital deal value in Asia involving Middle East based investors and 51% of the number of such deals."
By the numbers: India captured the highest share (37%) of overall exit value across all global markets not counting North America and Europe, over the last 18 months — even surpassing China, which made up 29% of exit value.
- Public market exits: $12.9 billion in 2023, $8.1 billion in H1 2024.
- Secondaries: $6.6 billion in 2023, $2.2 billion in H1 2024.
- Strategic M&A: $5.8 billion in 2023, $1.1 billion in H1 2024.
The bottom line: No wonder more than one VC has mentioned to me India as a new area of interest recently.
