Investments through private equity (PE) and venture capital (VC) are likely to touch $70-75 billion by 2015, said Grant Thornton, an audit and advisory firm, today.

“We expect $70-75 billion of PE and VC investments in India during 2010- 2015,” said Mr Sudhir Sethi, Founder, Chairman and MD, IDG Ventures India, and member of IVCA Executive Committee and Research and Data Sub Com.

Grant Thomas India today released Fourth Wheel – its first report on PE and VC — with Indian Private Equity and Venture Capital Association.

While India can be characterised as operating on three wheels — public sector, private sector and multinational companies – PE backed and owned companies will be the fourth wheel of India, said the report.

Private equity investments have crossed $50 billion over the last six years. The report also reveals that financial services, infrastructure and domestic consumption will offer good opportunities to PE investors.

However, Mr Harish H.V., Partner, India Leadership Team at Grant Thomas, said, “Exits are likely to be a challenge and there are likely to be more strategic exits, mergers and acquisitions between PE-backed companies and secondary transactions between PE houses, as the major avenues for exit and initial public offering, as an option, may diminish till there is a separate mid-market platform.”

“Increased specialisation among PE funds, which are VCs, sector focused, size focused or theme focused, will help in bringing together the appropriate skills to help build businesses,” the report added.

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