Private Equity and Venture Capital Investments Decline in Q1 2025

Investments by private equity and venture capital funds dropped to USD 13.7 billion in the March quarter. This represents a year-on-year decline of 14%. Larger transactions decreased, while pure-play PE/VC investments rose. Fundraising increased by 32%. Exits saw a significant rise but remained below last quarter levels.

Investments by private equity and venture capital funds fell to USD 13.7 billion during the first quarter of 2025, according to a report released on Monday.

The decline marks a 14% year-on-year decrease, as stated by industry lobby group IVCA and consultancy firm EY.

Expert Vivek Soni attributes the cautious investor sentiment to several macroeconomic factors including U.S. policy changes and central bank interest rates.