PE 'exits' worth $108 mn in Q2 this year: PwC

Private equity (PE) players have offloaded stakes worth $108 million in the second quarter of this year through 12 transactions, a decline of a whopping 89 per cent from the comparable period a year ago.

According to a research report by PwC, in the April-June quarter there were just 12 private equity exits worth $108 million, witnessing a decline of about 89 per cent in terms of value and 33 per cent in terms of number of deals a year ago. In April-June 2011, there were 18 deals worth $954 million.

‘Exits’ for PE firms are the means by which a fund is able to generate returns and realise investments in a company by options like an initial public offering, a trade sale, selling to another private equity firm or a company buyback. Nearly half of the exits in value terms in this quarter have been through public market sale, but in terms of numbers, the preferred modes of exit this quarter have been through strategic sale (five exits) and secondary sale (four exits), the report said.

A sector-wise analysis shows health care and life sciences sector tops the list for PE exits with a value of $439 million from a single deal. The manufacturing sector in terms of exit volume witnessed three exits, the highest across industries in this quarter.

In terms of region, Mumbai retained its first position in the June quarter by recording the highest level of funding with $489 million, followed by Bangalore, which has the second-highest share of deals and received investments worth $247 million from 23 deals.