With the initial public offerings (IPO) market drying and debt getting dearer by the day, private equity (PE) has become the lender of last resort for companies. Deals in the space are increasing and getting bigger, as promoters are willing to take a few steps more on the road to reasonable valuation. Avinash Gupta, head, financial advisory, Deloitte India, also feels promoters are more eager to strike deals than in the past. “Promoters feel fundraising will be tougher in the next six months, due to factors such as increased borrowing interest rates and soft share market. They feel this could be the right time for fundraising.” Even funds have become more reasonable in their expectations, leading to more transactions. “Given the fact of high valuation in pre-recession times and thereafter a lack of general conviction to transact, the current time offers a sense of reasonableness for both, the buyer and the seller, resulting in a greater deal flow,” said Abhijit Joshi, senior partner and CEO, Western Region, AZB & Partners.. […]