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October 03, 2016

Private Equity investments down by 50% to $3.2 Billion in Q3’16

Private Equity firms invested about $3.2 Billion across 125 deals during the quarter ended September 2016, according to early data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The investment amount was 50% lower than the all time high registered in Q3’15 (which witnessed $6.5 Billion across 224 transactions) and 5% lower than the immediate previous quarter ($3.4 Billion across 135 transactions). The latest figures take the PE investments in the first 9 months of 2016 to $10.6 Billion across 443 transactions – down 23% compared to $13.8 Billion across 594 deals in the same period in 2015. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.)

The latest quarter witnessed 10 PE investments worth $100 million or more to 17 such transactions in the same period last year and 5 during the immediate previous quarter, the Venture Intelligence analysis showed. The largest PE investment announced during Q3’16 was the $300 million raised by Paytm from Taiwan’s Mediatek, China’a Alibaba and VC firm SAIF Partners. The next largest were Goldman Sachs’ $250 million investment in Essel Highways followed by the $175 million raised by messenger firm Hike from China’s Tencent, Taiwan’s Foxconn and US-based Tiger Global.

IT & ITES companies accounted for 36% of the PE investment pie in Q3’16 attracting $1.1 Billion across 65 transactions. The value of IT & ITES investments in Q3’16 was down 68% from the $3.6 Billion across 132 deals in the same period in 2015. However investments in BFSI have more than doubled following $100M+ investments in India Infoline Finance, National Stock Exchange and Hero Fincorp.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.