July sees 39 PE/VC investments worth USD 886 mn: EY

There were 39 private equity and venture capital investments worth USD 886 million in July 2016, registering a decline of 58 per cent as compared to the corresponding period last year, says a report.
According to the EY report, the decline in both value as well as volume terms was mainly due to the drop in number of early-stage and large-sized deals.
In July 2015, there were 71 PE/VC deals worth USD 2.1 billion.
Meanwhile, exits grew significantly to USD 1.8 billion in July this year from USD 550 million in July 2015.
"After the record breaking investments amidst the hyperactive e-commerce and other early stage deal activity in 2015, exits are the big story in 2016," EY Partner and Leader for PE Mayank Rastogi said.

Rastogi further noted "we have had some very large strategic exits and highly successful PE backed IPOs and for the first time, exits are more than 50 per cent of the investments so far during the year - all of which should bode well for the Indian PE/VC ecosystem."

Meanwhile, startup and early-stage investments recorded the second lowest number of deals in last 24 months with 19 deals compared to 50 deals in July 2015.
There were 6 deals of USD 50 million and above, aggregating USD 484 million in July 2016 compared to 9 deals aggregating USD 1.6 billion in July 2015, the report added.

From a sector perspective, real estate and financial services were the largest contributors, accounting for 43 per cent of deal value and 41 per cent of deal volume.
Also, e-commerce recorded some improvement with deals worth USD 100 million (supported by USD 61 million fund raise by OYO rooms) after remaining below USD 80 million over the past 3 months.
According to the report, more than half of the deal value came from larger deals of USD 50 million and above, which included Fairfax's buyout of 51 per cent stake in Privi Organics for USD 55 million and CDC's investment of USD 149 million in India Infoline Finance for a 15 per cent stake, the largest deal in July this year.