Taking advantage of high valuations, PE investors made huge sums – ..

Mumbai: Private equity (PE) exits (withdrawals of investments) in the country in the first quarter of 2024 increased by 354.50 per cent year-on-year. The withdrawal of PE investments means a change in the investment mindset of investors. Higher valuations of equities have seen an increase in outflows.
According to a research report, there have been 50 exits in this period of 2024 compared to 11 exits in the first quarter of 2023.
PE investors pulled out a total of $3.60 billion, which is five times the exit value in Q1 2023. Exit from the open market has been the main factor leading to higher valuations. When exiting the open market, PE investors sell their stake in a company or sell equity through a public offering.
PE exit is considered to be when PE investors withdraw their investments from companies in order to obtain returns for their investors.
Exit is seen after a certain period of ownership. During ownership, PE investors adopt various strategies to maximize their investment value.
PE exits are considered successful only if they are generating returns. The report said that the first quarter of 2024 has been favorable for exits for PE investors due to high valuations.
Meanwhile, there was a sharp increase in PE deals in the country in the first quarter of 2024. The report also said that PE investments worth $5.20 billion were made in a total of 310 deals.
PE deals have increased by 61.80 per cent in terms of value and 26.50 per cent in terms of number of deals in this period of the current year as compared to the first quarter of 2023.