Momentum in Private Equity in India not in sync with Stock Market buoyancy in Q3 September 2009

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 14, 2009 --

Private Equity firms invested about $644 million across 40 deals during the quarter ended September 2009, according to a study by ARC Financial Services (www.arc-fs.com). The quarter was the worst quarter in terms of deal value as the total transactions size declined to $644 million compared to $793 million and $749 million in Q2 and Q1. However, it was also the best quarter of 2009 in terms of number of deals and witnessed a total of 40 deals compared with 34 and 39 in Q2 and Q1. The largest investment during Q3 Sep’09 was a $255 million investment by KKR to buy out Flextronics' residual stake in telecom software services firm Aricent. The deal accounted for a 1/3rd of total value of PE investments during the period. Driven by tight credit environment, PE are turning to more intensive portfolio management. Funds are more focused on domestic consumption driven and non-cyclical industries like Education,Healthcare and Energy.

Team ARC expects the recovery in the PE market in early 2010 with some recovery towards year-end, as the global economy scenario continues to show improvement. Buoyancy in secondary stock markets further our belief of improvement in equity investment scenario.

ARC Financial Services     Aricent     kkr     PE deals     private equity     Q3 Sep 09