Private capital investment value dips 29% in Q3, after record-high deal activity

The slowdown in global investment encompassed all regions in the third quarter of 2022, with financial services, fintech and consumer-facing segments suffering the most, the report noted.

One of the few bright spots was in infrastructure, especially digital and renewable energy, which attracted $30.8 billion through the third quarter, “exceeding all prior annual totals.”

In comparison, investments in infrastructure through the end of the third quarter of 2021 totaled $27.7 billion.

The report cited that the $2.7 billion buyout of digital infrastructure platform Cirion by private equity firm Stonepeak Infrastructure Partners from Lumen Technologies was the largest private capital investment recorded across GPCA’s markets in the third quarter of 2022.

In addition, third quarter investments of $509 million in Poland’s Rezolv Energy; $501 million in India-based Tata Power Renewables; and $450 million in India’s Hero Future Energies, drove private capital investment in renewable energy infrastructure to $3 billion through the first nine months of the year.

Within technology, electric vehicles and automotive tech defied the general slowdown in the tech space, the report said.

The total investment in electric vehicles, autonomous vehicles and automotive tech reached a record $9.5 billion year to date, including investments of $4.2 billion in just the third quarter. China accounted for the largest deals in these market segments, including a $1.2 billion investment in Sunwoda Electric Vehicle Battery, the report noted.

Electric vehicles “have emerged as a centerpiece of (China’s) industrial policy, and private capital investment in the space has followed,” GPCA stated in the report.

The report also indicated that fund managers raised $74 billion for investment vehicles targeting GPCA markets in the first three quarters of 2022, led by Asia-focused funds, with Hong Kong’s Baring Private Equity Asia closing the region’s largest fund of the year at $11.2 billion.

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