Funding squeeze pushes India Inc into PE's arms

Private equity investment in India is accelerating, as rising borrowing costs and dormant public markets in Asia's third-largest economy push companies to cut deals with buyout firms in return for much-needed cash injections.

Unlike developed markets, India offers few buyout opportunities and the bulk of the money is deployed as growth capital, with average deals in the range of $25-$100 million.

But more deals are emerging now as India's entrepreneurs slowly lower their valuation expectations and dip into a large pool of capital held by private equity.


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