The PE/VC investment activity and fund-raising rebounded in July with $4.1 billion investment across 77 deals. According to the IVCA-EY monthly PE/VC roundup, while on a year-on-year basis deal activity is still muted at $3.7 billion (excluding the investments in Jio Platforms), it saw an uptick into what has been the best month for PE/VC investments in 2020. This was supported by a pick-up in buyout deals which recorded $1.7 billion in PE/VC investments with marquee funds buying controlling stakes in quality businesses at attractive valuations. Likewise, PE/VC fundraising also recorded a sharp rebound in the month with fund-raising worth $2.2 billion, 38 per cent higher than the total funds raised in 1H2020.  

PE/VC investments in July were 51 per cent lower than the corresponding period last year and 41 per cent lower compared to June. The decline was due to fewer large deals across deal segments.  

The month recorded 10 large deals (value greater than $100 million) worth $3.1 billion compared to 13 large deals worth $7.1 billion in July 2019. The largest deals in July include Thoma Bravo's buyout of the US subsidiary of Majesco Limited for $594 million followed by KKR's buyout of JB Chemicals and Pharmaceuticals Limited for $496 million.

While the global and domestic economies are still not out of the woods yet, many sectors have started showing an uptick in activity under changed circumstances and altered modes of doing business. PE/VC fund managers also seem to be adjusting to constantly evolving paradigm, the report added.

From a sector point of view, technology was the top sector with $963 million invested across 10 deals followed by financial services with $882 million invested across 15 deals and pharmaceuticals with $699 million invested across three deals. Infrastructure, the top sector in July 2019 with $4.4 billion in investments, recorded just two deals worth $15 million in July 2020.Also Read: Aurobindo Pharma stock falls over 6% post Q1 earnings; check what brokerages say