Fairval

Notes on Indian equities, sectors and economy

Posts Tagged ‘private equity’

VC/PE deal space continues to see slowdown

Posted by fairval on December 14, 2016

Amount of investment in Indian VC/PE (and angel) space continues to see slowdown. This is from data for Jan-Nov’16 (Source: http://www.indiabusinessreports.com)

vcdealsnov16

YTD amount is just over USD8B, down 38% over last year, while deal count is down as well.

The decline is sharpest in internet based businesses, where investment is this year is just about a third of last year.

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VC/PE investments for 2015 close at ~USD 14B

Posted by fairval on January 12, 2016

VC_PE

Eight years after 2007, when India Inc absorbed ~USD18B of VC/PE investment, the sector once again saw robust activity in the year gone by. Total VC/PE investment hit almost USD14B, the second best year in the history of VC/PE investments in India.

In contrast, in 2014, total reported investment was ~USD9B, from 381 deals. Total reported deals were 556, around 178 did not report amount of investment. In 2015, total deals reported were 881, of which 300 did not disclose amount invested.

These numbers may not necessarily match with figures from some other sources, we have noticed some other numbers which are larger than India Business Reports’ number. The reason could be people are counting within VC/PE  numbers, deals which aren’t exactly what we would call a VC or a PE deal. For example, we don’t see how a strategic investment qualifies as venture capital. Or an investment in a company outside India, even though the source of money could be from India.

 

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VC/PE investment in 2015 overtakes calendar 2014

Posted by fairval on September 7, 2015

Acche din are  certainly here for Angel – VC – PE space.

  • YTD 2015 investment stands at around USD 9.1b, 5% more than the figure of USD 8.7b reported in entire calendar 2014.
  • Monthly investments in private equity seem to have picked up sharply in India. After 91 reported transactions in July, another 80 transactions were reported in August’15
  • The total deal count in Jan-Aug 15 stands at 529, almost 60% higher than the same period last year.

PEdeals_Aug15

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VC/PE sector headed for a big year

Posted by fairval on May 2, 2015

Revival in equity markets and economy seems set to drive a Angel/VC/PE investments to big year. In Apr’15, 67 transactions were reported, which could be an all time high for investment count in a single month. Value of reported investments crossed USD 1.5b.

In Jan-Apr’15, reported investment is around USD 4.4b, more than twice the amount reported in the same period in 2014 (USD1.8b)

VC/PE Deals Jan-Apr15

VC/PE Deals Jan-Apr15

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2012 saw record exits by private equity funds in India

Posted by fairval on January 5, 2013

3 key data items on VC/PE activity for 2012 (data source: Four-S Services)

1. 2012 was a the all-time record year for PE exits in India with total exit value of around f $5.30bn over 80 transactions,  compared to 80 deals worth $2.68bn in 2011. In the largest exit, Carlyle sold its stake in mortgage lender Housing Development Finance Corp (HDFC), pocketing nearly $1.1bn. Genpact ($1bn) was also one of the largest exits, exiting funds were General Atlantic and Oak Hill Capital.

 2. Total deal value fell. The year 2012 saw 475 PE/VC deals worth $8.13bn, a decline of 27% compared to investments worth $11.18bn across 423 deals in 2011.

PE Investments in India

PE Investments in India

 

3. Top 5 deals: The largest PE investment during the year was wherein Bain Capital agreed to buy 30% in BPO firm Genpact for $1bn. This was followed by $210mn investment by Morgan Stanley Infrastructure Partners to buy majority stake in Continuum Wind Energy, a wind energy firm. In another mega deal, Blackstone acquired 50% stake in Embassy Property Developments owned portfolio of three business parks for $200mn.

Investors Target

Stake (%)

Amount ($Mn)

Sector – Industry
Bain Capital, GIC Genpact

30.0

1000.0

Services – IT/ITeS
Morgan Stanley Infrastructure Partners Continuum Wind Energy

Over 50

210.0

Infrastructure –Power
Blackstone Embassy Property’s Office Portfolio

50.0

200.0

Real estate
Fairbridge Capital Pvt. Ltd. Thomas Cook (India) Ltd.

87.1

176.2

Services – Travel
MIH (part of Naspers Group), ICONIQ Capital, Accel Partners and Tiger Global Management Flipkart

NA

150

Services – Retail

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