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PE/VC investments rise by 51% in February 2019, exits jump 3x: EY India

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and Carlyle's US$415 million investment in is the largest PE/VC investment in the logistics sector in India

According to EY's Private Equity Monthly Deal Tracker - February 2019, investments worth US$2.6 billion across 61 deals and exits worth US$472 million across 10 deals were recorded. Both investments and exits were supported by improvement in deal activity in listed securities as stability emerged in the financial markets after witnessing significant volatility in the previous few months.

Talking about the PE landscape, Vivek Soni, Partner and - Private Equity Services, EY said, After a relatively subdued start into the year, February 2019 has been a good month, recording strong performance in both investments and exits. As market volatility has reduced, both PE/VC investments and exits in listed have bounced back.

With large investments by and buyouts by funds like Blackstone, True North, AION etc, the appetite of PE/VC funds for deals appears to be strong, notwithstanding prevailing uncertainties around global growth and impending in Underlying deal activity remains robust across large and mid-sized deals, although valuations appear to have corrected for many sectors compared to pre-September 2018 levels. We think 2019 could very well be one of the best vintages year for Indian PE/VC investments.

Investments

February 2019 recorded US$2.6 billion in PE/VC investments, 51% higher compared to February 2018 and 41% higher compared to the previous month. The growth was driven by higher number of large deals (deals of value greater than US$100 million). February 2019 recorded nine large deals aggregating US$1.8 billion compared to four large deals aggregating US$655 million in February 2018 and four large deals worth US$1 billion in January 2019. and Carlyle's US$415 million investment in was the largest deal in February 2019 and also the largest PE/VC deal in the logistics sector ever.

From the type of investments point of view, Growth investments, at US$1.2billion, were27% higher compared to February 2018. Private investment in public equity (PIPE) investments recorded a rebound in February 2019, emerging from a four year low of US$2.8 million recorded in January 2019.At US$431 million, PIPE investments in February 2019 were highest in past eight months.

February 2019 recorded two Buyouts worth US$262 million, compared to four Buyouts worth US$273 million in February 2018. Start-up investments in February 2019, at US$156 million across 32 deals, were 52% lower compared to US$325 million recorded across 31 deals in February 2018. Credit investments in February 2019, at US$548 million, have been highest in previous 12 months on the back US$350 million debt funding of ReNewPower by (OPIC), the US Government's

From a sector point of view, (US$712 million across 13 deals in February 2019 vs US$619 million across 13 deals in February 2018) was the top sector followed by logistics (US$470 million across four deals in February 2019 vs one deal of US$2 million in February 2018), which recorded its highest ever monthly investment on the back of the large investment in (US$35 million across five deals in February 2019 vs US$362 million across nine deals in February 2018), which is generally among the top sectors recorded a sharp decline in deal value.

Exits

Exits in February 2019, at US$472 million, were almost three times the value recorded in February 2018. This was on the back of a rebound in open market exits in wake of the volatility in the stock markets subsiding. There were four open market exits in February 2019 worth US$351 million, more than three times the value recorded in February 2018 and highest in past six months. There was one PE-backed IPO in February 2019 that saw and backed list on the bourses. The largest exit in February 2019 saw and GIC sell 5% stake in for US$324 million.

From a sector perspective, technology was the top sector, primarily on account of the large deal.

Fund raise

February 2019 saw funds worth US$ 285 million being raised and fund raise plans worth US$779 million being announced. US$250 million raised by life sciences fund for its third fund was the largest fund raise in February 2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 11 2019. 15:04 IST
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