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Private Equity firms invested about US$888 million across 44 deals during the quarter ended June 2009, according to a study by Venture Intelligence, a research service focused on Private Equity and M&A transaction activity in India. While the amount invested during the latest quarter was significantly lower than that during the same period last year (which witnessed $2,587 million invested across 92 deals), it was higher compared to the immediate previous quarter ($612 million across 43 deals).

Among the larger investments during the quarter was the reported Rs.600 crores in additional capital raised by telecom infrastructure firm Quippo Telecom from its existing investors (IDFC PE and Oman Investment Fund) and the acquisition of a 2.1% per cent stake in NSE by Norwest Ventures for Rs. 250 crores .The IT & ITES industry registered 12 deals worth $67 million during Q2 ’09, followed by Healthcare & Life Sciences (with 6 deals worth $129 million) and BFSI (6 deals worth $116 million). “While IT & ITES continued to attract the most number of PE investments, investments, in the industry have declined in both value and volume terms for the fourth straight quarter,” noted Arun Natarajan, CEO of Venture Intelligence.

PE Investments by Industry – No. of Deals, Source: Venture Intelligence

Late Stage and VC-type investments accounted for 15 deals (34%) each during Q2 ’09. (Late Stage deals accounted for 54% of the investments in value terms.) “Buyouts made a comeback during Q2 ‘09 registering three deals after virtually disappearing in Q1,” Mr. Natarajan added.