Private equity and venture capital investments came down 36% YoY in first half of the CY2026 at $ 20.5 billion as compared to $ 31.8 billion H125, EY-IVCA said in a report.
The investments were 29% lower than in H22025 at $29 billion. The number of deals in H12026 was 18% lower YoY at 604 deals in H12026 as against 734 deals in 1H2025, it said.
The duo said at $7.4 billion, Q22026 recorded the lowest quarterly PE/VC investments in the past six years in value terms.
Pure-play PE/VC investments in H12026 declined by 29% at $14.2 billion as compared to $ 20 billion un H12025 . The real estate and infrastructure asset class declined by 47% at $6.3 billion in H12026 as against $11.8 billion in H12025, it said. In terms of the number of deals, pure-play investments declined by 11%, whereas real estate and infrastructure deals declined by 44% year-on-year.
In H12026, growth investment deals emerged as the highest at $7 billion, followed by buyout investments at $5.4 billion. From a sector point of view, real estate was the top sector in H12026, recording $4.1 billion in investments, followed by technology ($3.1 billion), they said.
PE/VC exits stood at $9.4 billion across 95 exits in H12026, 29% lower than in $13.1 billion in H12025 .Open market exits accounted for 44% of the total exit value in 1H2026 ($4.1 billion), followed by strategic exits that accounted for 36% ($3.4 billion).
“Investor sentiment remained cautious, as resurging geopolitical tensions and the resulting spike in crude oil prices, the depreciation of the Indian rupee against the US dollar and valuation gaps between buyers and Indian sellers contributed to softer deal activity making 2Q2026 the slowest for PE/VC investments ($7 billion) in past 6 years. On the public market front, FII outflows continue (albeit at a slower pace than before) and the equity markets continue to correct downwards,” they said.
“Looking ahead, the upcoming quarterly earning season is expected to influence investor confidence and the FCNR deposit scheme is expected garner significant $ inflows, and stabilize the exchange rate. While near-term uncertainties emanating from global factors remain, improving valuation levels, calibrated government policy interventions and India’s strong long-term growth potential is expected to create investment opportunities, supporting an optimistic outlook for PE/VC activity in the mid to long term.”EY/IVCA said.