New Delhi: Global private equity (PE) investment reached $1.5 trillion in the first three quarters of 2025, despite a slowdown in deal activity, according to a report released on Tuesday.

The report by global consultancy KPMG said India remains a highly attractive destination for international investors, supported by strong macroeconomic fundamentals, favourable demographics, and rising domestic consumption.

KPMG noted that global PE deal volumes are on track to reach a potential four-year high if the current momentum continues into the final quarter of 2025.

The robust investment figures come even as the number of global deals fell from 15,083 in the first three quarters of 2024 to 13,574 during the same period in 2025.

In the third quarter alone, total deal value climbed to $537.1 billion across 4,062 transactions, up from $512 billion in Q3 2024, despite the decline in deal volume from 5,032.

In India, PE investment stood at $14.9 billion across 217 deals as of Q3 2025, down from $26.3 billion across 289 deals in 2024, largely due to geopolitical and trade uncertainties, particularly those linked to US tariff policies.

However, KPMG said investor sentiment towards India remains optimistic, with many global PE firms expanding their local presence and acting increasingly as business builders rather than passive investors.

The growing maturity of India’s investment ecosystem is reflected in the rising size of India-focused funds and the diversification of sectors attracting capital, from technology and healthcare to financial services and advanced manufacturing.

KPMG added that the strength of India’s capital markets and the steady flow of IPO exits have further enhanced the country’s investment appeal.

IANS