PE/VC in­vest­ments in Jan-nov at $27 bil­lion

Mint ST - - DEALS - Sri­[email protected] MUM­BAI

Pri­vate eq­uity (PE) and ven­ture cap­i­tal (VC) in­vest­ments till Novem­ber touched $27 bil­lion, sur­pass­ing the record high of $26.1 bil­lion in 2017, ac­cord­ing to a re­port by con­sult­ing firm EY.

Novem­ber 2018 recorded $1.6 bil­lion in PE-VC in­vest­ments, 33% lower com­pared to the cor­re­spond­ing same month of 2017, and 49% lower than Oc­to­ber. The fall in deal value was pri­mar­ily due to lack of large deals ($100 mil­lion-plus), shows EY’S Pri­vate Eq­uity Monthly Deal Tracker.

The month saw five large deals ag­gre­gat­ing $950 mil­lion, while in Novem­ber 2017 it took nine deals to ar­rive at the num­ber. In Oc­to­ber 2018, how­ever, the com­bined value of six deals were worth $2.5 bil­lion. Te­masek-owned Maple­tree In­vest­ments’ buy­out of Chen­nai’s SP In­foc­ity IT Park for $353 mil­lion was the largest deal in Novem­ber. In the 11 months ended 30 Novem­ber, ac­qui­si­tions worth $7.4 bil­lion were wit­nessed across 37 deals, which is more than the value of buy­outs in the pre­vi­ous two years com­bined ($3 bil­lion in 2017 and $3.9 bil­lion in 2016).

Start-up in­vest­ments also saw a strong re­bound in 2018 with $4.1 bil­lion in VC and PE money, which is 17% higher than 2017, the re­port added.

“Though Novem­ber 2018 has been a rel­a­tively weak month for PE-VC in­vest­ments and ex­its, the mo­men­tum of PE-VC ac­tiv­ity in In­dia con­tin­ues to be strong,” said Vivek Soni, part­ner and na­tional leader-pri­vate eq­uity ser­vices, EY.

“As we had fore­casted at the start of the year, 2018 has emerged as the best year for PE-VC in­vest­ments, with $27 bil­lion till date, and we still have one more month to go.”

While in­vest­ments touched a new record, ex­its were a damper, de­clin­ing 85%, com­pared to the $2.7 bil­lion wit­nessed in Novem­ber 2017, to $394 mil­lion. It was also sig­nif­i­cantly lower than the $1.4 bil­lion of ex­its recorded last month. The largest trans­ac­tion in Novem­ber saw CPPIB exit its 80% stake in SP In­foc­ity IT Park for $283 mil­lion. There were no Pe-backed IPOS in Novem­ber 2018.

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