Three major factors contributed to the challenge that private equity (PE) investors in India face at present. The country's economic slowdown, volatility in the capital market industry, and a weakened currency have made it challenging for PE investors to exit from their portfolio companies. Since 1995, the PE sector made 5,500 deals and over USD 100 billion, but so far, the exits were only worth USD 25 billion. The figures put the remaining 80% of each investment PE players placed on precarious ground.

Deloitte India Senior Director Avinash Gupta is concerned. "This is a matter of concern, and India is worse off than many other markets in this regard," he said in an interview with Mail Today. Director of O3 Capital Deepesh Garg, a Mumbai-based firm, describes the struggle of PE investors. "Post 2005, the situation has become scarier. Many investment between 2007-09 are stuck," he said.

A slight improvement was seen at the end of the quarter, however, as there were 29 successful exits from Indian companies as compared to the 21 in same quarter last year.