New Delhi, June 30 (IANS) India recorded its highest-ever monthly private equity (PE) and venture capital (VC) fundraises in May amid geopolitical uncertainties, according to a report released on Tuesday.

The report from EY-IVCA showed that total fundraising surged to a record $11.3 billion across 10 funds during the month, up from $646 million raised across six funds in April and $3 billion across 12 funds in May last year.

The largest fundraiser during the month raised $10.5 billion, including around $9.1 billion in external commitments, exceeding its original target of $7 billion.

However, PE/VC was at $2.1 billion in May, and the number of deals came to 76.

Pure-play PE/VC investments stood at $1.5 billion, while investments in the real estate and infrastructure segment declined 42 per cent from April and plunged 83 per cent compared to May 2025.

Buyout transactions led investment activity during the month at $840 million, followed by growth investments worth $560 million.

Vivek Soni, Partner and National Leader, Private Equity Services, EY, said easing crude oil prices, a relatively stable rupee and supportive measures by the government and the Reserve Bank of India are expected to improve investor confidence.

“India’s underlying macroeconomic fundamentals remain strong as reflected in continuing growth in consumer demand and service exports and digitisation of the economy. We remain optimistic that PE/VC deal activity will regain momentum as global uncertainties begin to ease,” he said.

In addition, financial services emerged as the top sector, attracting $402 million in investments, followed by e-commerce ($312 million) and infrastructure ($300 million).

PE/VC exits remained robust during the month, rising 162 per cent year-on-year to $2.7 billion across 14 deals. Strategic exits accounted for 52 per cent of the total exit value.

Geopolitical tensions, currency volatility and valuation differences between buyers and sellers weighed on investment activity during April and May, leading to slower deal closures, the report said.

–IANS

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