Sonia Dasgupta on three significant trends in the private equity market in 2023
Sonia Dasgupta, managing director & CEO of investment banking at JM Financial Limited spoke to ET about the trends in private equity markets in 2023. Excerpts of the interview:
Can you elaborate on three significant trends in the private equity market in 2023?
Increasing focus on Buyouts- Funds committed by private equity investors for control/buyout deals have doubled in 2023 (Rs 77,000 crore) as compared to 2022 (Rs 37,000 cr). There is increased comfort from private equity funds to cut larger cheques for control deals in India, given the opening up of diverse exit avenues such as secondary market sales, strategic sales, and IPO exits among others. (Select large buyouts in 2023 include Manipal Hospitals, HDFC Credila, CARE Hospitals / KIMS Health).
b) Emergence of the Healthcare sector: India has seen an increase in investments in the hospitals/healthcare sector (Rs 39,000 crore)in 2023 as compared to Rs 6,500 cr in 2022), with 2023 seeing large investments in Manipal Hospitals, CARE Hospitals, Indira IVF, Maxivision Eye Hospitals among others. Life sciences has become a key investment theme for global funds and these funds are looking to bring global scale and operating expertise to the space.
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c) Maturing Secondary Markets: Public market investors’ appetite for secondary market purchases from private equity funds has seen an uptick in 2023, up ~50% at Rs 80,000 cr, as compared to Rs 40,000 crore in 2021 and 2022. We have seen some large secondary market exits in 2023,
