Buyouts gain ground as private equity firms take control in India

Synopsis Private equity firms in India are shifting towards buyouts and majority stake acquisitions. This trend is reshaping the deal landscape, especially in financial services, technology, and healthcare. Founders and business families are increasingly open to these control transactions for various reasons. This strategic shift is driven by attractive returns and greater exit certainty. Mumbai: Private equity (PE) firms in India are increasingly opting for buyouts and majority stake acquisitions, marking a shift from the traditional model of minority investments, The Times of India (TOI) reported. While minority investments continue to dominate overall deal value, buyouts are emerging as a significant segment. Between 2021 and 2025, buyouts accounted for 24% of India’s total private equity investments, amounting to $71 billion out of $303 billion, according to EY-IVCA data cited by TOI. This made buyouts the third-largest investment category after growth and startup investments. In a recent transaction, US-based Carlyle agreed to acquire a majority stake in Edelweiss Financial Services’ home finance business for $230 million, adding to a series of buyouts reshaping India’s deal landscape, particularly in financial services, technology and healthcare, TOI reported. Foreign firms such as Blackstone, Brookfield, Carlyle, Advent International, EQT and KKR are leading many of these control transactions. According to Vivek Soni, partner (PE services) at EY, there has been a “sea change” in how founders and business families view private equity investors. Issues such as succession planning, exits from non-core businesses, buying out other family members or earlier PE investors, and managing volatility risks are among the key triggers for control transactions, TOI reported. Live Events Puncham Mukim, India head of private equity at Everstone Capital, told TOI that while India historically saw minority stakes and growth capital investments, the attractive returns and greater exit certainty of buyout deals have gained prominence. He added that the new generation of founders has shown greater openness to control transactions and large secondary sales. Industry participants expect founders and families to become a larger source of buyout deals in the coming years. Mukim said sponsors are increasingly building platforms and acting more like strategic investors rather than passive capital providers, with a focus on professional management and stronger governance. Soni noted that private equity firms are doubling down on pure-play buyouts as exit returns have been favourable. EY-IVCA data showed that PE firms realised $48 billion between 2021 and 2025 through exits. Secondary sales accounted for the largest share of exits, followed by strategic sales and stock market listings, TOI reported. While buoyant capital markets provide an attractive exit route through initial public offerings at strong valuations, they also pose competition for control deals. Elevated equity markets can raise seller expectations and widen the valuation gap between founders and PE buyers, potentially slowing deal closures, TOI reported. With inputs from TOI (You can now subscribe to our Economic Times WhatsApp channel) Why India’s steel ambitions are running into a scrap shortage Out, then in again: How AI put consulting back on IT’s hotlist How pension funds flow into equity ETFs skewing markets “Mere paas metric hai”: The valuation story most startups sell Stock Radar: Breakout from triangle formation pushes Indus Tower to record highs in February 2026; time to buy or book profits? Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 41% 1 2 3