Private Equity Firms in India Shift Focus to Buyout Deals Amid Rising Opportunities

India's private equity (PE) market is witnessing a major shift as companies are increasingly focusing on buyout deals to acquire controlling shares in firms. The trend is fueled by the PE industry's maturation, changing deal structures, and the potential for better risk-adjusted returns. In 2025, industries such as financial services and IT are proving to be the best buyout targets, as opposed to last year's focus on real estate and healthcare sectors.

 

Industry insiders observe that buyouts provide PE firms the latitude to make tactical choices and transform poor-performing assets. As India's IPO market surges—raising ₹1.6 trillion in 2024—companies poised to list publicly are getting more attractive for buyout deals. Besides, the recent withdrawal from investment in startups has brought to the forefront unexploited markets in Tier-II and Tier-III cities, pushing the trend even higher.

 

High-profile transactions like Brookfield's $2.5 billion buyout of ATC India and Warburg Pincus' $555 million acquisition of Shriram Housing Finance highlight the increasing magnitude of acquisitions. As valuations stabilise in mid-cap and small-cap segments, PE houses are well-placed to take advantage of these situations, reinforcing India as a top hub for private equity investments.

 

Source: Business Standard