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The year-to-date (January-August) PE/VC investments in India rose to an all-time high of $36.7 billion, riding mainly on large investments in the infrastructure sector that accounted for 35 per cent of all PE/VC investments during the year. This has surpassed an all-time high of $36.5 billion recorded in calendar year 2018.
On the back of 16 large deals of value greater than $100 million, the country’s PE/VC investments for August stood at $4.4 billion across 82 deals in August. Exits recorded $691 million across 11 deals on account of large secondary exits, according to a report by Indian Private Equity & Venture Capital Association (IVCA) and EY (IVCA-EY).
“PE/VC investments in the first eight months of 2019 have breached the $36.7 billion level, and given the deal momentum in various sectors, by the end of 2019, the total Indian PE/VC investment could potentially be in the range of $48 billion to $50 billion,” Vivek Soni, Partner and National Leader Private Equity Services at EY said.
“The infrastructure theme has witnessed interest from global buyout, pension and sovereign funds and this trend is expected to remain strong in the near-term. With both the Government as well as the private sector looking to monetise assets, we expect many more quality yield-generating assets to exchange hands, either directly or through InvIT structures,” he added.
Investments
The PE/VC investments in August were 13 per cent higher compared with that of $3.9 billion recorded in August 2018, but were 47 per cent lower compared with $8.5 billion recorded in July 2019.
On a number of deals basis, the reporting month recorded 39 per cent higher deals compared to August 2018 and 27 per cent lower compared with July 2019 (82 deals in August 2019 vs 59 deals in August 2018 and 112 deals in July 2019).
From a sector point of view, infrastructure ($803 million), real estate ($764 million) and financial services ($734 million) were the top three sectors in terms of PE/VC investments in August 2019.
Five out of the 16 largest deals in August 2019 were in infrastructure and real estate sectors, totalling $1.6 billion. GIC’s $631 million investment in IRB Infra’s road platform was the largest deal in August 2019 followed by Blackstone’s buyout of Coffee Day’s Global Village Tech Park for $400 million.
Growth deals recorded the highest value of investments in August 2019 at $1.6 billion across 20 deals (14 deals worth $1.8 billion in August 2018), followed by start-up investments worth $1.4 billion across 50 deals ($182 million across 32 deals in August 2018).
Exits
Exits stood at $691 million across 11 exits in August, which was 60 per cent lower compared with the value of exits recorded in August 2018 ($1.6 billion) and 9 per cent higher compared with exits in July 2019 ($635 million).
In August 2019, secondary exits were the highest at $350 million across three deals followed by buybacks worth $172 million across four deals.
The largest exit in August 2019 saw Gaja Capital, Partners Group and other shareholders sell their stake in EuroKids International to KKR for around $200 million and Multiples sell its 8 per cent stake in Delhivery Private to Canada Pension Plan Investment Board (CPPIB) for $150 million.
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