PEs, VCs pump in $3.2 bn investments in May: Report

Private equity and venture capital investments in the country reached USD 3.2 billion in May, helped by 10 large deals of value greater than USD 100 million, according to a report.

The the PE/VC investments crossed USD 3 billion in May for the second time this year, after January, consultancy firm EY said in its private equity monthly deal tracker report.

However, in volume terms, deals declined by 5 per cent in May this year to 53 deals, against 56 in May last year.

"There were 10 deals of value greater than USD 100 million accounting for almost 85 per cent of aggregate deal value (USD 2,746 million) in May 2018, compared to five (USD 2,675 million) in May 2017," the report said.

The largest deals in the month included Temasek's USD 761 million investment in Larsen & Toubro's electrical and automation business for 35 per cent stake, and Partners group and Kedaara's buyout of Vishal Mega Mart for USD 734 million.

"PE/VC investment activity in the country has continued its strong performance in 2018 despite some global headwinds, with both investments and exits exceeding the numbers recorded in the first five months of 2017," said Vivek Soni, partner and national leader (PE services), EY.

From a sector point of view, industrial products and retail and consumer products posted record level of investments, according to the report.

Exits worth USD 1.6 billion were recorded in May, the second consecutive month with over USD 1 billion in exits this year.

The reporting month witnessed four fund raises worth USD 368 million, while there were USD 600 million worth of fund raise plans announced, the EY report said.

The largest fund raise plan announcement of USD 300 million was made by Cerestra Advisors for investments into education infrastructure, it added.