With 24 investments worth over $100-M each, Mega Deals are back with a bang.
12 Deals over $200-M each account for 64% of the total investment value
Private Equity firms invested a record $8.2 Billion (across 158 deals) during the quarter ended June 2018 – up 60% compared to the $5.1 Billion (across 153 transactions) in the same period last year, according to early data from Venture Intelligence. The investment amount in Q2’18 was as much as 112% higher than the immediate previous quarter (which had recorded $3.9 Billion being invested across 157 transactions). Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.
The latest quarter witnessed 24 PE investments worth $100 million or more (accounting for almost 83% of the total investment value during the period) compared to just 10 such transactions in Q2’17, the Venture Intelligence data showed. Of these, 12 were larger than $200 million each (by themselves accounting for 64% of the total value) - compared to seven such investments in the year ago period. The latest figures takes the total PE investments in the first half of 2018 to $12.4 Billion (across 315 deals) – a figure similar to that recorded in first half of 2017 (across 358 transactions). (Calendar 2017 was the biggest ever year for PE investments in India, recording $23.5 Billion across 660 deals.)
The biggest PE investments reported during Q2’18 included the investment by Partners Group in outsourced IT product development firm GlobalLogic (via a secondary purchase from Apax Partners) for about $960 million, followed by Temasek’s contribution of about $760 million to the buyout of the L&T Electrical & Automation business by Schneider Electric.
IT & ITeS companies accounted for 31% of the PE investment pie ($2.6 Billion across 83 deals), led by the GlobalLogic deal and included Temasek’s $250 million investment in another mature IT Services firm, UST Global. Internet & Mobile companies - Paytm E-Commerce ($450 million); PolicyBazaar ($236 million) and Swiggy ($210 million) – completed the list of Top 5 PE investments in Tech during Q2’18. Manufacturing companies, led by the L&T E&A Business, attracted 16% of the pie ($1.3 Billion across seven deals). Healthcare & Life Sciences companies (led by ChrysCapital’s $350 million investment in Mankind Pharma) accounted for 12% and Energy companies (led by the Greenko Group investment) for 10%. The share of BFSI companies slipped to less than 10% of the pie during Q2’18, despite attracting four investments of over $100 million – in IARC; AU Small Finance Bank; IndiaFirst Life Insurance and India Infoline Wealth.
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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.