Data from Cambridge Associates showed that 2013 was a good year for private equity as they returned $120 billion to their institutional backers, the San Francisco Business Times reported.

Indian companies were able to get private equity deals worth $10.68 billion in 2013, an increase of 12% in value terms compared to that of the previous year.

The global private equity industry closed 2013 with "dry powder" amounting to $1.074 trillion, a figure much higher than the previous record high of $1.067 billion posted before the 2008 global financial crisis.

Private equity companies are buying the debt of the companies they own so they can become creditors and have a second shot at making money on their investments.

U.S. stocks closed out their best year in more than 15 on Tuesday, rising modestly on a strong consumer confidence reading that kept 2013's upward bias intact to the end.

Private equity firms are increasingly seeking to partner with U.S. companies rather than buying them outright, as they struggle to find ways to put their huge piles of money to work at a time when frothy markets have made takeovers expensive.

The world economy should snap a three-year stretch of slowing growth in 2014, although the upturn over the next 12 months looks likely to be incremental rather than a leap forward.

The 18.6% increase in the shares of listings backed by private equity firms will fuel the demand of institutional investors as more public debuts are being planned, the Financial Times reported.

US bank regulators said they would consider allowing banks to hold on to complex securities despite the Volcker rule prohibiting them from owning such and would arrive at a decision in the middle of January.

While shoppers in the UK and the US spent more for the holidays this year, the profit margin for retailers remains in doubt due to steep discounts, the Financial Times reported.