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The IVCA-EY monthly PE/VC roundup –
July 2019
From origination to exit, how much value can your capital create?
Page 2 20 August 2019 EY analysis of VCCEdge data
Our thoughts
“PE/VC investment activity in India has continued with the strong momentum built up in
1H19. The US$8.3 billion worth of PE/VC investments in India in July 2019 is the highest
value of monthly investments by PE/VC funds ever recorded, eclipsing the previous
historical monthly high of US$7.1 billion invested in March 2019. Yet again, this strong
performance has been driven by mega deals in the Infrastructure sector (US$4.7 billion
investments in July 2019). With this, the year to date cumulative PE/VC investments in
the Indian infrastructure sector add up to US$12 billion, which is greater than the total
investments received by the sector in previous seven years put together.
As projected by us in the beginning of the year, ready, yield generating infrastructure
assets have become an attractive investment class for global buyout, pension and
sovereign funds, giving an opportunity to infrastructure developers to monetize part of
their holdings and free up capital for funding greenfield infrastructure development and
deleveraging. It is worth noting that PE/VC investments in Indian infrastructure in year to
date 2019 exceed the total PE/VC investment made in the next three largest sectors
(financial services, real estate and technology). On the back of these mega PE/VC
investments in Indian infrastructure we are already at 90% of the historical high PE/VC
investments recorded in 2018. 2019 is well on its course to be the best year for Indian
PE/VC investments.
Over the next 12 months or so, the emerging theme to watch out for is the ‘Special
Situations’ investment class, wherein we project PE funds with a stressed assets strategy
to pick up activity considerably.”
Vivek Soni
Partner and National Leader
Private Equity Services
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Monthly trend analysis – July 2019
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Page 4 20 August 2019 EY analysis of VCCEdge data
Investments
► PE/VC investments in July 2019 were 4.7 times the value recorded in July 2018 and 2.2 times compared to June 2019 (US$8.3 billion in July 2019 vs. US$1.8
billion in July 2018 and US$3.8 billion in June 2019). The growth in investments was driven by improvement in deal activity across asset classes (i.e., pure play
PE as well as infrastructure and real estate). In terms of value, July 2019 recorded the highest monthly deal value ever, 18% higher than the previous high of
US$7.1 billion recorded in March 2019. In terms of number of deals, July 2019 recorded 51% higher deals compared to July 2018 and 15% higher compared
to June 2019 (106 deals in July 2019 vs. 70 deals in July 2018 and 92 deals in June 2019).
► Investments in infrastructure and real estate asset classes accounted for 56% of the total PE/VC investments in July 2019, recording the highest ever value of
monthly investments at US$4.6 billion, mainly on account of the large US$3.7 billion buyout of Reliance Jio’s tower assets by Brookfield. This deal is also the
largest ever investment made by a PE/VC fund in India, surpassing the US$2.5 billion investment made by Softbank in Flipkart in 2017. The year-to-date
investments in the infrastructure sector in 2019 have reached US$12 billion, making it the largest sector for PE/VC investments in 2019, which is higher than
the total investments made in the next three largest sectors of financial services, real estate and technology put together.
► July 2019 recorded 14 large deals (deals of value greater than US$100 million) aggregating US$7 billion compared to three large deals worth US$402 million
in July 2018 and nine large deals worth US$2.7 billion in June 2019. Five out of the 14 largest deals in July 2019 were in infrastructure and real estate sectors.
The US$3.7 billion Brookfiled-Relaince Jio deal was the largest deal in July 2019 followed by Baring PE Asia’s US$800 million buyout of Citius Tech.
► In terms of deal type, buyout deals recorded the highest value of investments at US$4.7 billion across five deals, compared to just two deals worth US$100
million in July 2018 followed by growth investments worth US$1.5 billion across 25 deals and private investment in public equity (PIPE) investments at US$1.5
billion across 11 deals. Start-up investments aggregated to US$583 million across 58 deals, accounting for 55% of the total number of deals in July 2019.
Key trends
Page 5 20 August 2019 EY analysis of VCCEdge data
Exits
► July 2019 recorded 10 exits worth US$635 million, 60% higher compared to the value of exits in July 2018 (US$397 million), however 38% lower compared to
June 2019 (US$1 billion). Secondary exits in July 2019 were highest at US$395 million across two deals followed by open market exits worth US$144 million
across three deals.
► The largest exit in July 2019 saw General Atlantic sell its 32% stake in Citius Tech to Baring PE Asia for around US$389 million.
► Technology sector recorded the highest value of exits worth over US$389 million across two deals.
Fund raise
► July 2019 recorded total fund raises of US$545 million compared to US$257 million raised in July 2018. The largest fund raise in July 2019 saw TVS Capital
raise its third fund of US$160 million. PE/VC funds also announced fund raise plans worth US$623 million in the same month.
Key trends
Investments (cont’d.)
► From a sector point of view, infrastructure was the top sector in July 2019 with US$4.4 billion in investments due to the large Brookfield-Reliance Jio deal.
Technology sector was second in line with investments worth US$1.1 billion that includes Baring PE Asia’s deal worth US$800 million.
Page 6 20 August 2019 EY analysis of VCCEdge data
PE/VC monthly headline trends: investments
1,790 3,891 4,022
3,336
1,801
3,187
1,777
2,949 7,084
4,445 3,719 3,799
8,329
7059 62 64
6972
88
63
91109 98
92106
0
20
40
60
80
100
120
-
2,000
4,000
6,000
8,000
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19
Total PE/VC investments
Value (US$m) # of deals
1,317 2,999 3,648
2,773 1,066
2,804 1,650 1,729
3,505 2,889 1,332 1,183
3,692 472
360 11
378
723
363
127 419
928 369
1,107 935
284
-
532 363
185
12
21 802
2,651
1,188 1,281 1,682
4,353
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19
PE/VC investments: split across asset classes
PE/VC investments (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)
US$m
#US$m
US$m
Page 7 20 August 2019 EY analysis of VCCEdge data
397
1,591
1,364
676 381 331 472 389
1,174
739 1,019
635
12
20
9
13
118
1310
1315
11
15
10
0
5
10
15
20
25
-
1,000
2,000
3,000
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19
Total PE/VC exits
Value (US$m) # of exits
377
1,588 1,292
393 381 331 381 256
972 739 916 548 13
71
283 80
92
201
7 133
104 87
-
1,000
2,000
3,000
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19
PE/VC exits - split across asset classes
Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)
US$m
PE/VC monthly headline trends: exits
16,029
16,029 #US$m
US$m
Page 8 20 August 2019 EY analysis of VCCEdge data
257
2,063
288
641
398
1,440
2,469
285 40
682 1,096
971
545 5
9
3
5
3 3
10
3
1
4
65
4
0
2
4
6
8
10
12
-
1,000
2,000
3,000
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19
Fund raise
Total funds raised (US$m) Total # of funds raised
#US$m
PE/VC monthly headline trends: fund raise
Page 9 20 August 2019 EY analysis of VCCEdge data
509
248
401
635
773
1,127
Others
Automotive
Retail and consumer products
Media and entertainment
Financial services
Technology
Top sectors by value US$m
31
8
8
11
17
21
Others
Retail and consumer products
Food and agriculture
E-commerce
Technology
Financial services
Top sectors by volume
PE/VC investments: US$3,692 million over 96 deals (excluding infrastructure and real estate investments)
126 (40) 147 (10)362 (10)
502 (6)
2555 (9)
<US$10m US$10m-
US$20m
US$20m-
US$50m
US$50m-
US$100m
>US$100m
Deal value US$m (volume)
155 (7)
800 (2)
1453 (11)
532 (56)
753 (20)
Credit
investment
Buyout PIPE Start-up/
Early stage
Growth
capital
Deal type US$m (volume)
Page 10 20 August 2019 EY analysis of VCCEdge data
4 (2) 72 (2) 100 (1)
4462 (5)
<US$10m US$10m-
US$20m
US$20m-
US$50m
US$50m-
US$100m
>US$100m
Deal value US$m (volume)
4,353
284
Infrastructure
Real estate
By value US$m
5
5
Infrastructure
Real estate
By volume
Infrastructure and real estate investments: US$4,637 million over 10 deals
NA (NA)
3870 (3)
NA (NA) 52 (2)
716 (5)
Credit
investment
Buyout PIPE Start-up/
Early stage
Growth
capital
Deal type US$m (volume)
Page 11 20 August 2019 EY analysis of VCCEdge data
Company PE investors Sector Stage US$mStake
(%)
CitiusTech Healthcare Technology
Private LimitedBaring PE Asia Technology Buyout 800 80
Zee Entertainment Enterprises
Limited
Invesco Oppenheimer
Developing Markets Fund
Media and
entertainmentPIPE 613 11
Future Lifestyle Fashions Limited Blackstone
Retail and
consumer
products
PIPE 250 7
Ola Electric Mobility Private
LimitedSoftBank Automotive Growth capital 248 NA
Think and Learn Private Limited
(Byju’s)
The Qatar Investment
Authority, Owl VenturesEducation Growth capital 150 NA
Top PE/VC investments
Top PE/VC investments excluding infrastructure and real estate in July 2019
Page 12 20 August 2019 EY analysis of VCCEdge data
Company PE investors Sector Stage US$mStake
(%)
Reliance Jio Infocomm Limited,
Tower armBrookfield Infrastructure Buyout 3,660 NA
Greenko Energy HoldingsGIC, Abu Dhabi Investment
Council
Power and
utilitiesGrowth capital 392 NA
L&T IndInfravit Trust -Sadbhav
Infrastructure Project Limited
Canadian Pension Plan
Investment Board (CPPIB)Infrastructure Growth capital 200 NA
Mars Enterprises and Hospitality
Ltd (Real estate asset)Brookfield
Real estate,
hospitality and
construction
Buyout 109 NA
L&T Realty Limited, Office
building in Mumbai Business
Park
Blackstone
Real estate,
hospitality and
construction
Buyout 101 100
Enzen Global Solutions Private
Limited
Greater Pacific Capital
PartnersInfrastructure Growth capital 100 NA
Top infrastructure and real estate investments in July 2019
Top infrastructure and real estate investments
Page 13 20 August 2019 EY analysis of VCCEdge data
NA (1) NA (1)
97 (2)
395 (3)
144 (3)
IPO Buyback Strategic Secondary Open market
Deal value US$m (volume)
9 (1)
68 (1)
73 (1)
87 (1)
389 (2)
Logistics
Retail and consumer
products
Financial services
Real estate, hospitality and
construction
Technology
Deal value US$m (volume)
Exits: US$635 million across 10 deals in July 2019
Exits in July 2019
Page 14 20 August 2019 EY analysis of VCCEdge data
Top exits
Top exits in July 2019
Company Sector Sellers Buyer Exit type US$mStake
(%)
CitiusTech Healthcare
Technology Private
Limited
Healthcare General Atlantic Baring PE Asia Secondary 389 32
Berggruen Hotels Private
Limited (Keys Hotel)
Real estate,
hospitality and
construction
Berggruen
Holdings
Fleur Hotels
Private LimitedStrategic 87 100
SBI Life Insurance
Company LimitedFinancial services KKR NA
Open
market73 1
Page Industries Limited
Retail and
consumer
products
Cartica Capital NAOpen
market68 2
Page 15 20 August 2019 EY analysis of VCCEdge data
Status Fund US$m Strategy
Raised TVS Capital 160
Finance services, business
services and niche consumer
services
Raised Investcorp 145Consumer, financial services and
healthcare
Raised Alteria Capital 140 Venture debt
Raised Dubai Startup Hub 100
Blockchain, Artificial Intelligence
(AI), Machine Learning (ML), and
Big Data Analytics
Fund raise
Top fund raise/announcements in July 2019
About EY Private Equity Services
Page 17 20 August 2019 EY analysis of VCCEdge data
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)
EY services for Private Equity
We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service line s.
Page 18 20 August 2019 EY analysis of VCCEdge data
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 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’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.
► About EY
► EY 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.
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About IVCA
About IVCA
The Indian Private Equity & Venture Capital Association (IVCA),
is the apex body promoting 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 Tandon
President, IVCA
Aakriti Bamniyal
Senior Vice President, IVCA
Contacts