Analysts say the PE industry earlier had funds that were focused on providing only growth capital. Now the industry is balanced with funds available at all stages of the lifecycle be it seed, venture, growth, buyout and even distress. Sector-wise, IT received PE funding of $1,867 million last year in 140 deals, followed by pharma, healthcare and biotech, which got funding of $856 million in 28 deals. Domestic consumption sectors like pharma, healthcare, food and beverages, FMCG and education look attractive for PE investors. From 2005 to 2012, PE funds have invested over $9 billion in over 150 deals followed by banking and financial services at over $7 billion in over 260 deals.
There are over 200 PE funds operating in India and are broadly categorised as international funds operating through an India office, funds sponsored or anchored by Indian financial institutions; or funds sponsored by business houses and funds managed by general partners with prior investment or industry experience.