PE/VC investments- Source: 6M EY Report
On a half-yearly basis, PE/VC investments in 1H2024 by value recorded an 8% increase y-o-y, and 30% compared to 2H2023 (US$31.5 billion in 1H2024 vs. US$29.3 billion in 1H2023 and US$24.2 billion in 2H2023). 1H2024 has already recorded 59% of last year’s investment value. In terms of number of deals,
Pure play PE/VC investments (excluding real estate and infrastructure sectors) in 1H2024 (US$18.6 billion) were 20% higher compared to 1H2023 (US$15.5 billion) and 12% compared to 2H2023 (US$16.6 billion).
Real estate and infrastructure asset class investments grew by 70% compared to 2H2023 (US$12.8 billion in 1H2024 vs US$7.6 billion in 2H2023).
Buyouts were the highest with US$9.9 billion invested across 28 deals, 42% y-o-y increase in value terms (US$7 billion across 30 deals in 1H2023) and 96% higher compared to 2H2023 (US$5.1 billion across 28 deals in 2H2023).
This was followed by growth investments, at US$7.6 billion across 88 deals, 27% y-o-y decline (US$10.5 billion across 72 deals in 1H2023 and US$6.6 billion across 75 deals in 2H2023).
Credit investments recorded the highest y-o-y increase of 64% and three times increase in number of deals, at US$5.6 billion across 141 deals (US$3.4 billion across 47 deals in 1H2023 and US$3.7 billion across 40 deals in 2H2023).
Start-up investments recorded US$4.9 billion across 322 deals vs. US$3.8 billion across 249 deals in 1H2023. PIPE deals were the lowest with US$3.5 billion across 75 deals vs. US$4.7 billion across 41 deals in 1H2023, and US$3.7 billion across 70 deals in 2H2023.
From a sector perspective, infrastructure was at the top in 1H2024 (US$7.1 billion across 44 deals). Real estate secured second rank with US$5.7 billion invested across 70 deals. Financial services sector took the third spot with US$5.4 billion recorded across 111 deals, a 27% y-o-y increase (US$4.3 billion across 79 deals in 1H2023). Other traditionally favored sectors by PE/VC investors, such as e-commerce and technology, grew by 74% and 24% y-o-y, respectively. However, investments in healthcare declined by 32% y-o-y.
Exits:
On a y-o-y basis, exits recorded 18% increase in terms of value in 1H2024 (US$11 billion) compared to 1H2023 (US$9.4 billion) and a 29% decline compared to 2H2023 (US$15.5 billion).
Exits via open market were the highest, with US$7.9 billion recorded across 85 deals, accounting for 72% of all exits in 1H2024. On a y-o-y basis, open market exits recorded a 69% growth in value (US$4.7 billion across 60 exits in 1H2023). Next in line were secondary exits at US$1.6 billion (27 deals), a 47% y-o-y decline (US$3.6 billion in 1H2023). Strategic exits recorded 29 deals worth US$768 million, a 37% y-o-y decline in value terms (US$1.2 billion across 42 deals in 1H2023). PE-backed IPOs recorded US$753 million in exits across 18 IPOs in 1H2024 compared to US$262 million recorded across five IPOs in 1H2023, a growth of 187%.