**PE/VC Investment Moderation Q1 2026** [cooling]
Key Questions
What were the PE/VC inflows in Q1 2026?
Inflows totaled $13.1 billion across 360 deals, according to EY-IVCA data. Buyouts reached $4.3 billion, with growth investments at $4.1 billion and exits at $4.2 billion.
What trends are observed in PE/VC investments?
Investments show moderation post-boom, with outflows stabilizing and early recovery signs in tech funds per EPFR. This signals caution and sectoral shifts in the market.
Why do mid-market companies prefer specialist advisory firms for M&A?
Indian mid-market companies increasingly choose specialist firms like DealPlexus over Big-4 for M&A, restructuring, and strategy due to tailored expertise. This helps in complex deal structures and decisions.
What are common structures in Indian mid-market acquisitions?
Most use a mix: promoter equity of 30-40%, acquisition debt, and PE/VC funding. This 'build vs buy' approach balances growth strategies for promoters.
What risks exist in incentive agreements during M&A?
Hidden risks arise in complex structures like carve-outs, creating ambiguity on entity responsibilities. Proper drafting is essential to mitigate these in transactions.
Inflows at $13.1B/360 deals (EY-IVCA), buyouts $4.3B top growth $4.1B, exits $4.2B; outflows stabilizing, tech funds early recovery signs (EPFR). Signals post-boom caution, sectoral shifts.