A study by Deloitte India shows that private equity investment in India exceeded $100 billion since 1995, but only $25 billion of the investment has been withdrawn.
In other words, in 80 per cent of investment, PE players have not got their money back, are struggling to find an exit and in some cases even written off their investment.
Private equity investors are finding it difficult to exit their investment owing to slowdown in economic activity, volatile capital market and the weak rupee.
Private Equity investment in India, which began in 1995, gained momentum only by 2004-05 and reached its peak in 2007-08 just before the collapse of the global financial markets.
Reports indicate that many private equity investment between 2007-09 are stuck. For the quarter ended June 2013, there was a slight improvement in exits. Investors were able to exit from 29 Indian companies compared to 21 exits in the same quarter of 2012, according to Venture Intelligence, a research service firm.