CHENNAI: Private equity and venture capital (PE-VC) investor exits hit a record high in 2021 at $38.7 billion across 270 deals due to a blockbuster year for public markets and hectic consolidation activity among digital enterprises.
The previous record was in 2018, when the Walmart-Flipkart deal had lifted exit value to around $26 billion. Exits by value grew fivefold from $7 billion in 2020 and the number of exits jumped 72% from 157 in 2020, according to data from Venture Intelligence.
Many marquee investors with long-term bets in India clocked double-digit returns last year, analysts said. The increased number of exits in 2021 is likely to have a domino effect as LPs (limited partnerships) flush with funds will reinvest actively, they added.
Venture Intelligence data showed that exits via strategic sales stood at $14.5 billion, up from $1.6 billion in 2020. About $11-billion worth secondary sales were made compared to $1.4 billion in 2020. Public market sales zoomed to $12 billion.
In terms of investments, PE-VC firms invested a record $63 billion (across 1,202 deals) in 2021 — a 57% rise over the previous year.
