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April 01, 2018

Private Equity investments fall 49% to $3.7 Billion in Q1’18

BFSI companies account for more than half the investment pie, Absence of mega deals in IT & ITeS drags down overall numbers

Private Equity firms invested about $3.7 Billion (across 133 deals) during the quarter ended March 2018 – down 49% compared to the $7.3 Billion (across 200 transactions) in the same period last year, according to data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The investment amount in Q1’18 was also almost 29% lower than the immediate previous quarter - which had witnessed $5.2 Billion being invested (across 152 transactions). Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.


The latest quarter witnessed only 9 PE investments worth $100 million or more compared to 13 such transactions in the same period last yea. Also notable was the fact that Softbank – which dominated 2017 with its mega e-commerce bets on Flipkart, Paytm, Ola and Oyo - did not figure among the top ten deals in Q1’18. The only Indian investment by the Japanese investment giant so far in 2018 has been the relatively small follow-on investment (of INR 400 Cr or $61-M) in e-grocer Grofers.
The largest PE investment reported during Q1’18 was the $1.06 billion preferential allotment by publicly listed mortgage lender HDFC Limited to investors including GIC, KKR and others (including Canada Pension Plan OMERS, Carmignac Group and Premji Invest). The second largest investment in Q1’18 was the $275 million investment by TPG Capital in the resultant entity of the proposed merger between Manipal Hospitals and Fortis Healthcare.

Company
Investors
Amount

HDFC
 GIC, KKR, Others
$1,062 M

Manipal Health Enterprises
 TPG Capital
$275 M

RattanIndia Finance
 Lone Star
$200 M

Catholic Syrian Bank
 Fairfax Holdings
$180 M

Religare Enterprises
 Bay Capital Investments
$141 M

Gaana.com
 Tencent, Others
$115 M


Source: VentureIntelligence.com

On the back of $1.5 billion investments in NBFC companies, BFSI (Banking, Financial Services & Insurance) accounted for 51% of the PE investment value pie in Q1’18 attracting $1.9 billion across 14 transactions. Led by Tencent’s investment in Gaana.com, IT & ITeS companies came in next attracting $927 million across 79 PE investments, followed by Healthcare & Life Sciences companies which attracted $361 million across 9 transactions (led by the TPG - Manipal Health Enterprise deal). 


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.