Private Equity and Venture Capital firms invested $5.9 Billion (across 190 deals) during the quarter ended June 2019, according to data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The investment value fell 39% compared to the $9.6 Billion (across 206 transactions) recorded in the same period in 2018 and 45% lower than the immediate previous quarter (which had witnessed $10.5 Billion being invested across 193 transactions). (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate).
The latest quarter witnessed 16 PE investments worth $100 million or more (with 4 of them $400-M or above) compared to 26 such transactions in the same period last year.
The largest investment reported during Q2’19 was Singapore sovereign wealth fund GIC's $600 million investment in an SPV of Indian Hotels Company. The SPV will be used to acquire and manage fully operational hotels. The second largest investment also involved GIC and another sovereign wealth fund Abu Dhabi Investment Authority (ADIA), which invested $495 million in renewable energy company Greenko Group.
IT & ITeS companies came in first attracting $2 Billion across 113 transactions. Top investments in the sector were Baring Asia's 35% stake acquisition in NIIT Technologies for $430 million. The firm has also launched an open offer to acquire an additional 26% in the company. (A successful offer would increase the deal value at $710 million.) The second largest investment was a $220 million Series F round led by late stage tech investor SoftBank Vision Fund in grocery delivery company Grofers.
Energy companies attracted the next highest investments attracting $867 million across 6 PE investments. Apart from Greenko Group, another renewable energy platform ReNew Power raised $300 million from common investor ADIA, Canada Pension Plan Investment Board (CPPIB) and Goldman Sachs.
Arun Natarajan, Founder, Venture Intelligence pointed to the lack of billion dollar deals during the latest quarter as compared to recent quarters as the reason for the dip in investment value. "The number of investments has remained approximately the same and the activity has also been spread across a healthy range of sectors - from IT to E-Commerce to Infrastructure," he added.
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.