Hot Sectors in PE

• Education: With an estimated $40bn market for private institutions, education sector will be one of the most favorite sectors for Private Equity and Venture Capitalists in coming years. A Venture Intelligence survey revealed that more than 80% investors are planning to make an investment of around $800MM in education sector over the next 12 months. Since 2006, $300MM has been invested in Indian education ventures.
• Healthcare: Opportunity is being seen mainly in diagnostic services, medical devices, hospital chains and wellness products. India has a huge competitive advantage in clinical research. Hospitals are yet another area where a lot of investment to be seen in near future as the average number of beds is the lowest in India. During the last 18 months, PE players have invested $686MM in the health care sector.
• Cleantech: PEs and VCs are likely to invest about $3.5bn in clean technology in next few years. Regulations in India (where 10% power is generated from renewable sources) are very positive for the sector.

Reference for survey and investment period: July 2009