May witnessed the highest number of private equity investment deals in more than three years, attracting $1.4 billion, a global consultancy firm says.

According to Grant Thornton, PE deal values amounted to $1.4 billion through 43 deals in May 2011 compared with $0.26 billion by way of 15 deals during the corresponding month last year.

“PE investment volume has witnessed a significant upsurge during May 2011, with the highest number of deals after more than three years,” the Grant Thornton India Partner and National Leader — Valuation Services, Ms C.G. Srividya, said, adding that “there have been several large-sized deals with four investments valued at over $100 million’’.

During May 2011, 43 PE investments were witnessed, whereas in May 2010, the figure stood at 15 and in May 2009, the level was just a meagre 13 transactions.

On the mergers and acquisition front, there were deals worth $4.22 billion last month by way of 55 transactions against $8.11 billion through 52 deals in 2010, the report said.

PE investment value so far this year stands at $4.03 billion, around twice the level it was a year ago ($2.65 billion), whereas the total M&A deal value so far this year is comparable to last year.

May also witnessed big-ticket deals, with the top five PE deals accounting for 57 per cent of the total PE deal value and the top five M&A deals accounting for 79 per cent of the total M&A deal value.

“There have been several high value deals this month, with four M&A transactions valued at over a quarter billion. We have also seen several new sectors such as shipping & ports and electrical doing large deals,” Ms Srividya said.

The same was the case in the PE space as well, where “there have been several large-sized deals, with four investments valued at over $100 million,” she added.

Total value of M&A and PE deals in May 2011 stood at $5.38 billion via 99 deals compared with $8.60 billion by way of 72 deals in the corresponding month of 2010.

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