Discussion has started between blank check companies in the US and Indian PEs on possible deals in certain key sectors.
More and more PE players are willing to test the waters now, just in case they become early entrants in a future booming business.
Sensing a huge opportunity in the healthcare sector during the Covid-19 pandemic and its aftermath, private equity (PE) players are upping their investments in the space. According to data from research platform VCCEdge, the PEs have together invested a staggering $583.82 million in the first five months of 2021 in five deals, which is the highest investment in the sector in the last five calendar years - from 2016 to 2020. The second highest investment in the sector took place in 2017, when PEs invested $503 million in 18 deals, with an average deal size of $29. 9 million.
Private equity players said their research had shown that the PE share after COVID-19 could go up to 8-10 per cent.
Over 10 Indian start-ups with total valuations of $84 billion (some are planning fresh fund-raising) are bracing to launch initial public offerings (IPOs) in the next 36 months. While the size of their IPOs is under discussion, estimates are that they would together raise a minimum of over $8-10 billion during the initial listing.
People move from investment banking to growth equity or from venture capital to growth equity or entrepreneurship, depending on what's attractive at different points of life.
Venture capitalists are leveraging their experience to build something new.