How do you see the opportunity in your obstacles?...4 EY analysis of VCCEdge data Investments On a half yearly basis, investments in 1H19 increased by 27% in terms of value compared

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The IVCA-EY PE/VC roundup

How do you see the opportunity in your obstacles?

2 EY analysis of VCCEdge data

Our Thoughts

“While Indian PE/VC investment activity has continued its strong performance in 1H19 (27% higher than 1H18 and 30% higher than 2H18), the sectoral distribution is significantly different this time around. As per EY’s forecast in the beginning of 2019, infrastructure and real estate sectors have taken the lead in attracting PE investments from marquee global investors. 1H19 attracted US$7.3 billion of PE/VC investments in Indian infrastructure sector, which is more than 1.6x recorded in the entire 2018 and is more than the previous two years’ investments put together. Infrastructure investment trusts (InvITs) are finding favor with global investors, pension funds and sovereign wealth funds and with India’s maiden real estate investment trusts (REIT) paving the way for more such REIT offerings, the mood appears to be upbeat for quality commercial real estate assets.

Buyouts as a PE investment strategy has become even stronger, with 1H19 recording the highest value and number of buyouts for any half-year period ever (39% more than 1H18 by value). Exits, however, have had a subdued performance in 1H19 with open market exits and IPOs being impacted by the volatility in the capital markets.

In our view, notwithstanding headwinds like volatile oil prices, global trade relationships between the US and China, and stress in India’s shadow banking ecosystem, Indian PE/VC investments appear to be well on course to surpass the record highs of 2018.”


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Half-yearly trend analysis – 1H2019



Investments

► On a half yearly basis, investments in 1H19 increased by 27% in terms of value compared to 1H18 and 30% compared to 2H18 (US$23.4 billion in 1H19 vs. US$18.5 billion in 1H18 and US$18 billion in 2H18) and is the best half-yearly performance ever. In terms of the number of deals, the increase is higher at 43% and 35% compared to 1H18 and 2H18, respectively (536 deals in 1H19 vs. 376 deals in 1H18 and 396 deals in 2H18). Both, the first and the second quarter of 2019 have recorded a strong growth in deal activity compared to the corresponding quarters in 2018.

► The outperformance of PE/VC investments in 1H19 is mainly attributable to the record level of investments worth US$11.1 billion in the infrastructure and real estate asset classes. While pure play PE/VC investments in 1H19 at US$12.3 billion have been at investment levels similar to those recorded in 1H18 (US$12.8 billion), investments in the infrastructureand real estate sectors in 1H19 are 23% higher compared to investments made in entire 2018. As a result, these two asset classes have together accounted for 48% of all PE/VC investments in 1H19 compared to 30% in 1H18 and 19% in 2H18.

► While investments in real estate in 1H19 (US$3.8 billion) increased by 66% over 1H18 (US$2.3 billion), the PE/VC investments in the infrastructure sector have moved the needle meaningfully. Investments in the infrastructure sector in 1H19 are at US$7.3 billion, which are higher than the total infrastructureinvestments of US$6.5 billion made by the PE/VC funds in the previous two years combined.

► Like in 2018, large deals (deals of value greater than US$100 million) continue to drive the growth of PE/VC investment. The 1H19 recorded 54 large deals aggregating to US$17.2 billion (compared to 45 large deals aggregating to US$14.5 billion in 1H18), the highest number for large deals in any half-yearly period. In 1H19, 23 out of 54 large deals, were in infrastructure (13 deals) and real estate (10 deals) and were worth US$9.9 billion. Seven out of the top 10 deals in 1H19 were in infrastructure (five deals) and real estate (two deals) sectors.

► The largest deals in 1H19 in the infrastructure sector include Brookfield’s buyout of Reliance Industries Limited’s (RIL’s) East-West pipeline worth US$1.9 billion, followed by Abu Dhabi Investment Authority (ADIA) and National Investment and Infrastructure Fund’s (NIIF’s) US$929 million investment in GVK ’s airport subsidiary for a 49% stake. These were also the largest deals in 1H19. The largest deal in the real estate sector in 1H19 saw Brookfield buying out four hotel assets from Hotel Leela Ventures Limited for US$572 million. From a pure play PE/VC perspective, the largest deals include Carlyle and Canadian Pension Plan Investment Board’s (CPPIB’s) US$817 million investment in SBI Life Insurance Company Limited followed by GIC’s US$726 million investment in Bharti Airtel Limited.

► Buyouts as a strategy for PE/VC investment continues to gain prominence. The first six months of 2019 recorded 31 buyouts aggregating to US$6.9 billion, the highest value and number for any half-year period ever, which was 39% higher in terms of value and 29% higher in terms of volume compared to 1H18. Buyouts in infrastructure (six worth US$2.9 billion) and real estate (eight worth US$1.9 billion) together accounted for 71% of the buyouts by value and 45% by volume in 1H19.

Key trends: half yearly

5EY analysis of VCCEdge data

Key trends: half yearly

► Four out of the top 10 deals in 1H19 were buyouts, which in addition to the two deals by Brookfield mentioned above, include Caisse de dépôt et placement du Québec’s (CDPQ’s) buyout of three road assets from Essel Infraprojects for US$500 million and GIC’s US$420 million investment in a hotel investment platform in a joint venture with The Indian Hotels Company Limited.

► From a sector point of view, in 1H19, infrastructure leads with an investment of US$7.3 billion in 29 deals, more than 1.6x the value recorded in entire 2018. Financial services sector was next in line with US$4.2 billion invested across 89 deals in 1H19, which was 17% lower in terms of value compared to 1H18, followed by real estate with US$3.8 billion invested across 43 deals. Another sector that can be viewed as an extension of the infrastructure investment theme is power and utilities (that includes renewables) that recorded investments worth US$1.9 billion across 18 deals, almost equal to the value and volume recorded in entire 2018.

► 1H18. The IPO market recorded significantly lower activity compared to 1H18 with four PE-backed IPOs in 1H19 (8 in 1H18). Included in the count of PE backed IPOs is the landmark REIT IPO of Embassy Office Parks, a JV between Blackstone and Embassy Group (there was no offer for sale by Blackstone in the REIT’s IPO).

► From a sector perspective, healthcare recorded the highest value of exits in 1H19 (US$856 million across 10 deals) followed by technology (US$816 million across 10 deals) and financial services (US$801 million across nine deals).

► The largest exit in 1H19 saw Carlyle and Temasek sell their stakes in Medanta to Manipal Hospitals for US$377 million followed by Bain Capital and GIC paring down their investment in Genpact Limited for US$324 million.

Exits

► On a year-on-year (yoy) basis, exits declined by 26% in terms of value in 1H19 (US$4.1 billion vs. US$5.5 billion in 1H18) and 24% in terms of volume (77 deals vs. 101 deals in 1H18). The decline was mainly due to fewer large deals. Quarterly comparison shows a relatively better performance in 2Q19 compared to 1Q19 (US$2.9 billion in 2Q19 vs. US$1.8 billion in 1Q19).

► Exits via open market recorded US$1.6 billion (22 deals) in 1H19, 2.3 times the value recorded in 1H18. Exits via strategic sale recorded US$1.5 billion (32 deals) in 1H19, 10% higher than the value recorded in 1H18. Exits via secondary sale (sale to other PE funds) recorded US$836 million (17 deals) in 1H19, 61% lower in terms of value compared to

Fund raise

► The first half of 2019 saw US$5.5 billion in fund raise, 85% higher compared to 1H18. The largest fund raise in 2019 saw Edelweiss Alternative Asset Advisors raise US$1.3 billion for investment into stressed assets followed by Chrys Capital raising US$850 million for its eighth fund. New fund raise plans announced in 1H19 stood at US$10 billion compared to US$13.6 billion in 1H18.


PE/VC half yearly headline trends: investments

8,615 11,058

7,996 8,238 10,275

15,869 18,496 18,027

23,400

369 398

310 278

294 301376 396

536

0

100

200

300

400

500

600

-

5,000

10,000

15,000

20,000

25,000

1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019

Total PE/VC investments

Value (US$m) # of deals

6,755 7,915 5,815 6,089 8,298 10,818 12,828 14,608 12,260

1,400 1,957 1,322 1,857

3,682 2,315

2,307 3,837

459 1,185

860 292 671

1,369 3,354 1,113 7,303

- 3,000 6,000 9,000

12,000 15,000 18,000 21,000 24,000

1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019

PE/VC investments: split across asset classes

PE/VC investment (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)

US$m


PE/VC half yearly headline trends: exits

3,597 2,390 2,715 3,065 4,363 7,339

4,196

20,060

3,594 99

125 409 353 295

511

262

367

293 214 49 16 110

56

489 1,079

9

236

-

3,000

6,000

9,000

12,000

15,000

18,000

21,000

1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019

PE/VC exits: split across asset classes

Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)

US$m

3,910 2,564 3,140 3,528 4,714

8,339 5,536

20,436

4,124

120134

86 125 131 129101

73 77

020406080100120140160

-

5,000

10,000

15,000

20,000

25,000

1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019

Total PE/VC exits

Value (US$m) # of exits


PE/VC half yearly headline trends: fund raise

3,830

2,610 3,017

1,296

2,006

3,768

3,005

5,087 5,543

16

20

30

11

2024

23 28 29

0

5

10

15

20

25

30

35

-

1,000

2,000

3,000

4,000

5,000

6,000

1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019

Fund raise

Total funds raised (US$m) Total # of funds raised


Investments (excluding infrastructure and real estate)

569

572

1,015

1,324

9,347

776

819

1,719

1,685

7,261

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size US$m

178

38

31

17

29

212

57

52

23

31

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size #

12,828

12,260

1H2018

1H2019

Total investments (US$m)

331

464

1H2018

1H2019

# of deals

4,484

2,411

2,702

2,318

914

3,625

2,720

2,854

1,991

1,070

Expansion/Growth

Start-up/Early stage

PIPE*

Buyout

Credit investment

Deal type US$m

109

159

26

15

22

84

305

26

17

32

Expansion/Growth


PIPE

Buyout

Credit investment

Deal type #

Note: Deal value not available on 89 out of 464 deals in 1H2019 and 38 out of 331 deals in 1H2018

* PIPE: Private investment in public equity


Investments: infrastructure

11

20

-

137

3,186

26

-

165

338

6,774

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size US$m

2

1

-

2

7

6

-

4

5

13

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size #

1,564

-

146

1,638

6

3,721

51

-

2,981

549

Expansion/Growth


PIPE

Buyout

Credit investment

Deal type US$m

3,354

7,303

1H2018

1H2019


17

29

1H2018

1H2019

# of deals

9

3

1

3

1

17

3

-

6

3

Expansion/Growth


PIPE

Buyout

Credit investment

Deal type #

Note: Deal value not available on one out of 29 deals in 1H2019 and five out of 17 deals in 1H2018


Investments: real estate

Note: Deal value not available on seven out of 43 deals in 1H2019 and two out of 28 deals in 1H2018

8

99

159

203

1,845

79

67

154

407

3,131

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size US$m

3

6

5

3

9

12

5

4

5

10

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size #

574

43

186

986

526

1,369

46

404

1,898

120

Expansion/Growth


PIPE

Buyout

Credit investment

Deal type US$m

2,315

3,837

1H2018

1H2019


28

43

1H2018

1H2019

# of deals

8

6

2

6

6

22

8

2

8

3

Expansion/Growth


PIPE

Buyout

Credit investment

Deal type #


1H2019 investments: sector-wise

3,262

816

-

579

1,844

1,316

2,315

5,011

3,354

2,522

812

926

947

1,351

1,530

3,837

4,172

7,303

Others

Healthcare

Telecom

Logistics

Technology

E-commerce

Real estate

Financial services

Infrastructure

Top sectors by value (US$m)

88

4

15

25

11

21

28

39

64

81

106

21

29

30

39

42

43

57

80

89

Others

Business and professional services

Retail and consumer products

Healthcare

Media and entertainment

Food and agriculture

Real estate

E-Commerce

Technology

Financial services

Top sectors by # of deals

1H2019 1H2018


Top PE/VC investments

Top PE/VC investments excluding infrastructure and real estate in 1H2019

Company PE investors Sector Stage US$m Stake (%)

SBI Life Insurance Company Limited Carlyle, CPPIB Financial

services PIPE 817 11

Bharti Airtel Limited GIC Telecommunications PIPE 726 NA

Delhivery Private Limited SoftBank, Carlyle Logistics Growth capital 415 38

BrainBees Solutions Private Limited (First Cry) SoftBank E-commerce Growth

capital 397 NA

NIIT Technologies Limited Baring Asia Private Equity Technology PIPE 381 30

AGS Health Private Limited Baring Asia Private Equity Healthcare Buyout 339 NA

Essel Propack Limited Blackstone Industrial products Buyout 310 51

Interglobe Technologies Private Limited AION Technology Buyout 230 NA

DMI Finance Private LimitedN.I.S. New Investment Solutions Liechtenstein Limited

Financial services Buyout 230 NA

Cholamandalam Investment and Finance Company IFC Financial

servicesCredit investment 222 NA



Top infrastructure and real estate investments in 1H2019


RIL's East West Pipeline Brookfield Infrastructure Buyout 1,888 90

GVK’s airport subsidiary ADIA, NIIF Infrastructure Growth capital 929 49

GMR Airports Limited GIC, SSG Capital Management Infrastructure Growth

capital 651 25

Hotel Leela Venture Limited, Four Hotels Brookfield Real estate Buyout 572 100

Essel Infraprojects Limited (3 road assets) CDPQ Infrastructure Buyout 500 100

Greenko Energy Holdings GIC, ADIA Power and utilities

Growth capital 495 NA

JV with The Indian Hotels Company Limited GIC Real estate Buyout 420 70

India Grid Trust GIC, KKR Infrastructure Buyout 400 57

DivyaSree Developers Private Limited, Hub6 ADIA - Kotak Real estate Growth

capital 400 NA

Indiabulls Real Estate Limited Blackstone-Embassy JV Real estate PIPE 388 39

Wing A of the One BKC office complex in Mumbai’s BandraKurla Complex (BKC)

Blackstone Real estate Buyout 359 60

ReNew Power OPIC Power and utilities

Credit investment 350 NA



Top InvIT investment deals in 1H2019


RIL’s East-West Pipeline Brookfield’s India Infrastructure Trust Oil and gas Buyout 1,888 90

India Grid Trust GIC, KKR Power Buyout 400 57

Oriental Structural’s Infra Investment Trust

Asian Infrastructure Investment Bank (AIIB), DEG, International Finance Corporation(IFC) and HEG

Roads and highways

Growth capital 331 NA

IndInfravit Trust OMERS Infrastructure Management Inc.

Roads and highways

Growth capital 122 22


1H2019 exits: analysis

3,289

20

373

262

457

560

577

887

235

236

293

801

816

856

Others

Pharmaceuticals


Real estate

Financial services

Technology

Healthcare

Top sectors US$m

43

10

7

20

13

8

34

7

7

9

10

10

Others


Industrial products

Financial services

Technology

Healthcare

Top sectors #

434

968

1,327

2,118

689

69

165

1,455

836

1,598

IPO

Buyback

Strategic

Secondary

Open market

Exit type US$m

5,536

4,124

1H2018

1H2019

Total exits (US$m)

101

77

1H2018

1H2019

# of deals

8

12

23

24

34

4

2

32

17

22

IPO

Buyback

Strategic

Secondary

Open market

Exit type #


Top exits

Top exits in 1H2019

Company Sector Sellers Buyer Exit type US$m Stake (%)

Global Health Private Limited (Medanta) Healthcare Carlyle,

TemasekManipal Hospitals Strategic 377 46

Genpact Limited Technology Bain Capital, GIC NA Open

market 324 5

Cancer Treatment Services International Inc.

Healthcare TPG Varian Medical Systems Inc. Strategic 283 NA

Housing Development Finance Corporation Limited

Financial services KKR NA Open

market 270 1

MindTree Limited Technology Nalanda Capital Larsen and Toubro Limited Strategic 247 11

ICICI Lombard General Insurance Company Limited

Financial services Warburg Pincus NA Open

market 226 3

Reliance Nippon Life Asset Management Limited

Financial services Reliance Capital Nippon Life

Insurance Co. Secondary 208 11

DLF Limited Real estate GIC NA Open market 187 4

Fractal Analytics Private Limited Technology

TA Associates, Khazanah Nasional Berhad

Apax Partners LLP Secondary 178 NA

Jubilant Life Sciences Pharmaceuticals IFC NA Open market 135 NA


Fund raise

Top fund raise in 1H2019

Status Fund US$m Strategy

Raised Edelweiss Alternative Investment Arm 1,295 Stressed assets

Raised Chrys Capital 850 Sector agnostic

Raised India Resurgence Fund 750 Structured debt

Raised B Capital 400 Structured debt

Raised Nexus Venture Partners 354 Early stage

Raised A91 Partners 350 Consumer, healthcare, financial services and technology


How is tax technology re-defining your tax landscape?Monthly trend analysis – June 2019



Key trends

Investments

► PE/VC investments in June 2019 were 92% higher compared to June 2018 and 8% lower compared to May 2019 (US$3.4 billion in June 2019 vs. US$1.8 billion in June 2018 and US$3.7 billion in May 2019). The growth was driven by improvement in deal value across deals types. In terms of number of deals, June 2019 recorded 67% higher deals compared to June 2018 but 11% lower compared to May 2019 (87 deals in June 2019 vs. 52 deals in June 2018 and 98 deals in May 2019).

► Investments in infrastructure and real estate assetclasses accounted for 66% of the total PE/VC investments in June 2019.

► From the point of view of deal type, growth deals recorded the highest value of investments at US$1.6 billion across 18 deals, 60% higher compared to June 2018 followed by private investment in public equity (PIPE) investments at US$583 million across five deals. There were four buyouts worth US$428 million in June 2019. Start-up investments aggregated to US$503 million across 53 deals, accounting for 61% of the total number of deals in June 2019.

► June 2019 recorded eight large deals (deals of value greater than US$100 million) aggregating US$2.4 billion compared to seven large deals worth US$1.3 billion in June 2018 and eight large deals worth US$2.7 billion in May 2019. Seven out of the top 10 largest deals in June 2019 were in infrastructure and real estate. GIC and ADIA’s US$495 million investment in Greenko Energy Holding was the largest deal in June 2019 followed by Blackstone-Embassy’s JV worth US$388 million as investment in Indiabulls Real Estate Limited and Blackstone’s buyout of Radius Infra Holdings Private Limited’s One BKC project for US$357 million.

► From a sector point of view, infrastructure was the top sector for June with US$1.4 billion in investments. GIC and ADIA invested a large sum of US$495 in GreenkoEnergy Holding and a group of investors including Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), IFC and HEG invested US$331 million in Oriental Structural’s InvIT. Real estate sector was second in line with an investment of US$809 million that includes large deals by Blackstone.


Exits

► June 2019 recorded 15 exits worth US$1 billion, more than two times the value of the exits in June 2018 and 38% higher compared to May 2019. Strategic exits in June 2019 were highest at US$367 million across five deals followed by open market exits worth US$364 million across four deals and secondary exits worth US$219 million cross five deals.

► The largest exit in June 2019 saw Nalanda Capital sell its 11% stakes in Mindtree Limited to Larsen and Toubro Limited for US$247 million.

►

► From the perspective of a sector, financial services recorded the highest value of exits worth US$433 million across three deals

Fund raise

► June 2019 recorded total fund raises of US$971 million compared to US$863 million raised in June 2018. Fund raise plans worth US$1.7 billion were announced in June 2019.


PE/VC monthly headline trends: investments

1,780 1,790

3,891 4,022

3,336

1,801

3,187

1,777

2,949

7,084

4,445

3,719 3,425 52

70

59 62 64

69 72

88

6391

109

98

87

0

20

40

60

80

100

120

-

2,000

4,000

6,000

8,000

Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Total PE/VC investments

Value (US$m) # of deals

US$m

1,100 1,317

2,999 3,648

2,773

1,066

2,804

1,650 1,729

3,505 2,889

1,332 1,156 15

472

360 11

378

723

363

127 419

928

369

1,107 887 666

532 363 185

12

21

802

2,651

1,188

1,281 1,382

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


PE/VC investments: split across asset classes

PE/VC investments (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)

US$m

US$m


PE/VC monthly headline trends: exits

446 377

1,588 1,292

393 381 331 381 256

972 739 916 13

71

283 80 92

201

2

- 133

104

-

1,000

2,000

3,000


PE/VC exits - split across asset classes

Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)

US$m

16,029

446 397

1,591 1,364

676

381 331 472 389

1,174

739 1,019

1112

20

9 13

11

8

13

10

1315

11

15

0

5

10

15

20

25

-

1,000

2,000

3,000


Total PE/VC exits

Value (US$m) # of exits

16,029

#US$m

US$m


PE/VC monthly headline trends: fund raise

863

257

2,063

288

641 398

1,440

2,469

285 40

682

1,096 971

3

5

9

3

5

3

3

10

3

1

4

65

0

2

4

6

8

10

12

-

1,000

2,000

3,000


Fund raise

Total funds raised (US$m) Total # of funds raised

#US$m


PE/VC investments: US$1,156 million over 72 deals (excluding infrastructure and real estate investments)

212

80

179

192

207

287

Others

Media andentertainment

Automotive

E-Commerce

Technology

Financial services

Top sectors by value US$m

22

6

8

8

12

16

Others

Media and entertainment

Healthcare

E-Commerce

Financial services

Technology

Top sectors by volume

127 (38) 135 (10)

276 (8)307 (5)

130 (1)

<US$10m US$10m-US$20m

US$20m-US$50m

US$50m-US$100m >US$100m

Deal value US$m (volume)

110 (6)62 (2)

2 (2)

479 (49)

322 (12)

Creditinvestment

Buyout PIPE Start-up/Early stage

Growthcapital

Deal type US$m (volume)


Infrastructure and real estate investments: US$2,269 million over 15 deals

31 (5) 15 (1)171 (2)

2050 (6)

<US$10m US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m


1,561

887

Infrastructure

Real estate

By value US$m

6

9

Infrastructure

Real estate

By volume

191 (1)

366 (2) 404 (2)

23 (4)

1284 (6)

Creditinvestment

Buyout PIPE Start-up/Early stage

Growthcapital

Deal type US$m (volume)


Company PE Investor Sector Stage US$m Stake (%)

Mahindra and Mahindra Limited Quebec Deposit and Investment Fund Automotive PIPE 179 1.5

Druva Inc.Tenaya Capital, Nexus, Riverwood Capital and others

Technology Growth capital 130 NA

Razorpay Software Private Limited

Tiger Global, Ribbit Capital, Sequoia Capital and others

Financial services Start-up 75 NA

Wickedride Adventure Services Private Limited

Sequoia Capital, Accel India, IDG Ventures and others

E-commerce Start-up 72 NA


Top PE/VC investments excluding infrastructure and real estate in June 2019


Company PE Investor Sector Stage US$m Stake (%)

Greenko Energy Holdings GIC, ADIA Power and utilities Growth capital 495 NA

Indiabulls Real Estate Limited Blackstone-Embassy JV Real estate PIPE 388 39

Radius Infra Holdings Private Limited, One BKC Blackstone Real estate Buyout 357 100

Oriental Structural’s Infra Investment Trust

AIIB, DEG, IFC and HEG Infrastructure Growth capital 331 NA

Unitech Suraksha ARC, JM Financial Infrastructure Growth capital 288 NA

GVK Goldman Sachs, others Infrastructure Credit

investment 191 NA

ESR-Lodha Industrial Park at Palava City

ESR, Warburg Pincus JV Real estate Growth capital 100 50

Top infrastructure and real estate investments

Top infrastructure and real estate investments in June 2019


Exits: US$ 1,019 million across 15 deals in June 2019

69 (1)

366 (5)

218 (5)

364 (4)

IPO Buyback Strategic Secondary Open market


85 (2)

86 (3)

103 (1)

247 (1)

434 (3)

E-commerce

Healthcare

Power and utilities

Technology

Financial services



Company Sector Sellers Buyer Exit type US$m Stake (%)

Mindtree Limited Technology Nalanda CapitalLarsen and Toubro Limited

Strategic 247 11

ICICI Lombard General Insurance Company Limited

Financial services Warburg Pincus NA Open

market 226 3

Reliance Nippon Life Asset Management Limited

Financial services Reliance Capital

Nippon Life Insurance Co.

Secondary 208 11

Consul NeowattPower Solutions Private Limited

Power and utilities

Peepul Capital Fund

Fuji Electric Co. Limited Strategic 104 84

Top exits

Top exits in June 2019


Status Fund US$m Strategy

Raised India Resurgence Fund 750 Structured debt

Raised Pioneering Ventures 70 Agriculture

Announced Distressed assets fund for micro, small and medium enterprises (MSMEs) by Government of India 719 Stressed assets

Announced Piramal, Lone Star 650 Roads and highways

Announced Investcorp 300 Real estate

Fund raise

Top fund raise/announcements in June 2019


About EY Private Equity Services


About EY’s Private Equity Services Practice

EY has been working with the private equity industry for more than 25 years, with approximately 25,000 seasoned professionals worldwide dedicated to the industry and its business issues. EY serves 74% of the top 300 PE firms included in the Global PEI 300 firms list. Private equity firms, portfolio companies and investment funds face complex challenges. They are under pressure to deploy capital amid geopolitical uncertainty, increased competition, higher valuations and rising stakeholder expectations. Successful deals depend on the ability to move faster, drive rapid and strategic growth and create greater value throughout the transaction life cycle. EY taps its global network to help source deal opportunities and combines deep sector insights with the proven, innovative strategies that have guided the world’s fastest growing companies.

In India, EY is among the leading providers of advisory, tax, transactions and assurance services. The organization is also the number one professional services brand* in India, which is a testimony to our relentless commitment to deliver exceptional client service and create a better working world.

► EY’s India Private Equity Services Practice has been among the top advisors for private equity deals over the past ten years. EY has been awarded the “Most Active Transaction Advisor” award by Venture Intelligence for 2009-2013 and also the “Investment Bank of the Year, Private Equity” award by VC Circle in 2012 and 2017. EY was also the top PE advisor in the Venture Intelligence league table in 2018.

► EY’s India Private Equity Services Practice provides value to PE funds and their portfolio companies through its deep sector and service expertise. EY India is organized around key industry verticals in a matrix structure that enables us to offer an unparalleled blend of industry expertise and functional skills. We actively track about 15 sectors with sector leads driving our penetration in each of those sectors.

EY has 16 offices spread across 10 cities in India. Worldwide, our 247,570 people across 150+ countries and 700+ cities are united by our shared values and their unwavering commitment to quality.


EY services for Private Equity

We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service lines.

Funds

Transaction Advisory Services

Portfolio Services

Fund assurance and management(Fund and fund management company audit, portfolio valuation, controls and process design and review, tax and regulatory compliance)

Buy and sell side advisory (M&A, capital markets support, tax structuring, regulatory compliance, SPA advisory, integrated sell side advisory – building equity story, vendor due diligence (VDD), structuring marketing)

Partners (Personal tax)

Fund Raising(Marketing collateral, fund structuring, audit of fund performance)

Growth (Strategic options, technology security, IT strategy, operational improvement, SCM, market entry options and working capital management)

Distressed (Debt syndication, bank intermediation, restructuring, working capital management, cost reduction, insolvency and bankruptcy advisory)

Transition(PMO, 100-days plan, transaction Integration, GAAP conversion, governance, controls assessment, MIS development, process advisory, standard operating procedures, CFO services and compliance manager)

Exit readiness (IPO, GAAP conversion, vendor due diligence, value creation, investor relations, exit preparation, sale mandates, exit structuring)

Buyside support (Due diligence – financial, tax, business and commercial, forensics and background, HR, IT and environmental, modeling and valuations)

Assurance (Statutory audit, tax compliance, risk management, corporate governance advisory, internal audits and fraud reviews)

Tax and Legal (Tax advisory, tax accounting, ESOP advisory, global mobility, transfer pricing and operating model effectiveness, tax policy and litigation, regulatory compliance)


IVCAAbout IVCA

The Indian Private Equity & Venture Capital Association (IVCA), is the apex body representing the Alternative Investment Funds (AIFs) in India and promotes stable, long-term capital flow (Private Equity (PE), Venture Capital (VC) and Angel Capital) in India.

With leading VC/ PE firms, institutional investors, banks, corporate advisers, accountants, lawyers and other service providers as members, it serves as a powerful platform for all stakeholders to interact with each other. Being the face of the Industry, it helps establish high standards of governance, ethics, business conduct and professional competence.

With a prime motive to support the ecosystem, it facilitates contact with policy makers, research institutions, universities,trade associations and other relevant organizations. Thus support entrepreneurial activity, innovation and job creation.

Rajat TandonPresident, IVCAE: [email protected]

Aakriti BamniyalVice President, IVCAE: [email protected]

Contacts

About IVCA

Contacts

Allwyn D’SouzaSenior ManagerE: [email protected]

Research and Insights

Pooja Bhalla MathurVice PresidentE: [email protected]

Brand, Marketing and Communications

Naveen TiwariPartner and National LeaderOperational Transaction ServicesE: [email protected]

PE Value Creation and Operational Transaction Services

Transaction Advisory Services (TAS)Amit KhandelwalPartner and National LeaderTASE: [email protected]

Ajay AroraPartner and National LeaderInvestment Banking AdvisoryE: [email protected]

Kuldeep TikkhaPartner and National LeaderTransaction DiligenceE: [email protected]

Sailesh RaoPartner and National LeaderCorporate Finance StrategyE: [email protected]

Vivek SoniPartner and National LeaderE: [email protected]

Narendra RohiraPartner, Transaction TaxE: [email protected]

Nachiket DeoPartner, Transaction TaxE: [email protected]

Subramaniam KrishnanPartner, Tax & Regulatory ServicesE: [email protected]

Private Equity Services

Tejas DesaiPartner, Tax & Regulatory Services [email protected]

Rajan SatijaDirectorE: [email protected]

Ernst & Young LLP

EY | Assurance | Tax | Transactions | Advisory

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in.

Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata – 700016

© 2019 Ernst & Young LLP. Published in India. All Rights Reserved.

EYXXXXXXXXXXXXED None

This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

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How do you see the opportunity in your obstacles?...4 EY analysis of VCCEdge data Investments On a half yearly basis, investments in 1H19 increased by 27% in terms of value compared

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