Private Equity firms invested $2.5 billion across 97 deals in the third quarter of 2012, highlighting a 32% decline in deal value and 8% increase in deal volume compared to the previous quarter, according to a new report. Compared to the same period last year, deal value increased by 4% whereas number of deals dropped 20%, said the MoneyTree India Report brought out by PWC.

The Information Technology and IT enabled services sector took a lions share of the money. Investments worth nearly $1.3 billion were made in 45 deals that happened in the sector. Thats nearly half of all the deals that went down in the quarter.

The average deal size in IT/ ITeS went up by $9 million to $29 million in the quarter, the report said.

In the quarter, private investment in public equity (PIPE) deals were at the highest at $1,1422 where as number of early stage deals saw a marginal decline of 5%.

Growth stage deals ($389 million) have increased by 27 % in value while number of deals declined. Compared to same period last year, there has been a 66% drop.

Even though the late-stage category deals stand second in terms of value of investment, with US$ 394 million from 20 deals, they have shown a decline of 28% and 17% in terms of value and volume respectively

Mumbai and Bangalore saw the largest investment followed by NCR and Hyderabad.

An earlier report mentions that VC firms invested over $200 million in more than 52 deals in India during the same quarter.

Full report here. (pdf)

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