Half year total hits record high of $11.3 Billion, Venture Intelligence data shows
3rd straight quarter of over $5 Billion in PE investments – a new record again
Private Equity firms invested about $5.4 Billion across 124 deals during the quarter ended June 2017, according to data from Venture Intelligence (http://www.ventureintelligence.com), a research service focused on private company financials, transactions and their valuations. The investment amount was 62% higher than the amount registered in Q2’16 (which had witnessed $3.3 Billion across 145 transactions) but 9% lower than the immediate previous quarter (which saw a record $5.9 Billion across 148 transactions). These figures take the total investments in the first six months of 2017 to a record $11.34 Billion (as against the $7.4 Billion across 335 companies in the same period last year and the previous record high of $10 billion in the second half of 2007). (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.)
The largest investment reported during Q2’17 was the $1.4 billion investment by SoftBank in One 97 Communications, the parent company of mobile payments service Paytm. The latest quarter witnessed 10 PE investments worth $100 million – twice that during the same period last year. Canadian pension fund CPPIB as well global PE firm Warburg Pincus were also especially active during the period and joined SoftBank in the list of investors committing to invest over $1 billion in the first six months of 2017.
“The most heartening factor about the record investment figures of 2017 is that it has been spread across a wide range of sectors,” noted Arun Natarajan, CEO of Venture Intelligence. “While last year’s favorites of Financial Services of Infrastructure sectors continue to attract mega dollars, big ticket investments in new age companies like Paytm - along with facilitating healthy exits for early investors - have provided re-assurance that the E-Commerce story in India is far from over.”
On the back of mega investments in companies like Paytm, Tata Technologies and Aegis BPO, IT & ITeS companies accounted for 49% of the PE investment value pie in Q2’17 attracting almost $2.6 billion across 68 transactions. Led by the Warburg Pincus investment in ICICI Lombard, BFSI companies came in next attracting $689 million across 12 PE investments, followed by Logistics companies which attracted $536 million across four transactions (led by CPPIB’s $500 million investment in Indospace Core).
Venture Intelligence subscribers will be mailed the reports with more detailed analysis of the quarterly trends.