Private equity and venture capital investments declined 27 per cent to USD 1.19 billion in October due to decline in big ticket transactions, says a report.
PE/VC transactions worth USD 1.63 billion had been announced in October last year, said the EY report.
On month-on-month basis, there was a marginal increase of 5.3 per cent in value terms in October this year.
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"PE/VC investment activity improved marginally in October 2016 but was the strongest since May this year. Also, encouraging was the rebound in VC/early stage deal volumes with 30 deals recorded in October 2016," said Mayank Rastogi, Partner and Leader for PE, EY.
Rastogi noted that buyouts as a theme is finally starting to play out and that is leading to robust investment numbers.
Argand Capital's buyout of Sigma Electric for USD 250 million from Goldman Sachs, CDPQ's USD 155 million investment in TVS Logistics providing exit to KKR and Goldman Sachs, and Everstone Capital's buyout of C3 (Customer Contact Channels) Inc for USD 150 million in partnership with Sunrise BPOwere the top three deals in October 2016.
From a sector perspective, Industrial Products (USD 253 million, three deals) and logistics (USD 179 million, three deals) emerged as leading contributors to the aggregate deal value for the month.
Regarding the exits, October recorded USD 765 million across 16 deals. This was mainly on account of two large transactions -- Goldman Sachs' exit from Sigma Electric for USD 225 million and HDFC Property Fund's exit from World One, a luxury residential project by Lodha Group in Mumbai.
There was one PE backed IPO in October this year where Actis exited its 13.7 per cent stake in Endurance Technologies for USD 135 million, EY said.
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