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Construction : Web Exclusive | February 2013 | Source : Construction Update

PE investment falls 15% in 2012

According to a report by Grant Thornton, investment by private equity firms declined 15 percent to $7.4 billion in 2012 from $8.8 billion in 2011.

Investments in the infrastructure sector declined 59 percent. PE players also gave real estate a wide berth, and investments in the space fell 33.4 percent. Deals in the banking and financial services sector also fell 15.7 percent.

The report shows that the number of private equity deals increased by 0.4 percent to 244. Further, the overall mergers and acquisition deal flows declined 7.5 percent in 2012 , the report shows.

While the overall inflows declined, the average deal size fell 21.7 percent to 18 million dollars. However, Grant Thornton is optimistic of things turning around in 2013.

According to the firm, there could be improvement in the investment by private equity funds during 2013. Also, it expects average size of deal to rise in 2013.

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