Private equity and venture capital funds' investments declined by 40 per cent to USD 8.8 billion in the September quarter, a report said on Friday. The decline in overall investments happened despite the number of deals being 26 per cent higher during the same period at 283 transactions, the report by industry lobby grouping IVCA and consultancy firm EY said. "Geopolitical tensions have created uncertainty, dampening investment sentiment as investors become more cautious, leading to slowing deal-making. This sluggishness may persist if global uncertainties continue," the consultancy firm's partner Vivek Soni said. However, the firm's outlook remains "cautiously optimistic" as India's fiscal health remains strong, he added. Large deals of over USD 100 million more than halved to 21 with a cumulative value of USD 5.5 billion, the report said, adding pure-play PE/VC deals, excluding real estate and infrastructure, were 30 per cent lower at USD 6.5 billion. The largest deal during the