Mumbai, (Maharashtra) [India], August 31 (ANI): India's private equity and venture capital (PE/VC) ecosystem witnessed a strong start to the second half of 2026, with investments rising 52 per cent month-on-month to USD 4.1 billion in July, while fundraising touched a record USD 23.7 billion in the year so far, according to the latest EY-IVCA PE/VC Roundup.

The report said July recorded the second-highest monthly PE/VC investment value in 2026, with USD 4.1 billion deployed across 111 deals, compared with USD 2.7 billion across 80 deals in June. On a year-on-year basis, investment value increased 3 per cent from USD 4 billion in July 2025, although the number of deals declined 7 per cent from 119.

'July 2026 recorded US$4.1 billion in PE/VC investments, 3% higher year-on-year than in July 2025 (US$4 billion) and 52% higher month-on-month than in June 2026 (US$2.7 billion),' Vivek Soni, Partner and National Leader, Private Equity Services, EY India, said.

The report noted that large transactions accounted for a significant share of activity, with 10 large deals worth USD 2.8 billion contributing 68 per cent of total PE/VC investments during the month. Brookfield's USD 600 million investment in Lumara was the largest deal recorded in July.

Buyout investments emerged as the leading deal segment at USD 1.4 billion, marking a 176 per cent increase from USD 511 million in July 2025. Credit investments followed at USD 880 million, while growth investments stood at USD 817 million and start-up investments at USD 805 million. Start-up investments registered a 90 per cent year-on-year increase.

Infrastructure was the leading sector, attracting USD 1.5 billion, followed by financial services at USD 649 million and food and agriculture at USD 335 million. Together, the three sectors accounted for 61 per cent of overall PE/VC investments in July. Infrastructure and real estate investments together rose 148 per cent year-on-year to USD 1.8 billion.

The fundraising environment remained particularly strong. PE/VC funds raised USD 23.7 billion across 56 fundraises in 2026 so far, making it the strongest year for fundraising on record, despite five months still remaining.

Fundraising activity was boosted significantly by Bain Capital's USD 10.5 billion fund, which accounted for 44 per cent of capital raised during the year. Other notable fundraises included USD 3.2 billion by NIIF, USD 2.7 billion by Tiger Global and USD 2.2 billion by ChrysCapital.

'Fundraising activities over the last few years have remained resilient. Despite global macroeconomic uncertainty, elevated interest rates and geopolitical tensions, investor interest in India continues to remain strong relative to other emerging markets,' Soni said.

The report said PE/VC funds have raised an aggregate USD 135.8 billion across 781 fundraises since 2016, with nearly 72 per cent of the total capital raised since 2021. The availability of dry powder is also expected to support deal activity going forward.

On exits, July recorded 17 PE/VC exits worth USD 1.6 billion, an 83 per cent decline from USD 9.2 billion in July 2025. Secondary exits accounted for USD 808 million, or 52 per cent of total exit value. The largest exit was NIIF and others' sale of their 100 per cent stake in Aseem Infrastructure Finance to TPG and GIC for USD 521 million.

Soni said the investment momentum came despite a cautious environment shaped by geopolitical uncertainties and noted that stable monetary policy and stronger-than-expected Q1FY27 corporate earnings had reinforced investor confidence.

'Looking ahead, India's macroeconomic fundamentals remain supportive of investment activity. With significant dry powder available across PE/VC funds, deal-making is expected to accelerate further as geopolitical conditions stabilize,' he said. (ANI)