The Venture Intelligence Blog

A Mint article titled  Buyout activity set to cross 2015 highs; slow start to PE exits  quotes Venture Intelligence data on high Buyout activity in 2016. Buyouts showed strong momentum in the first six months of 2016, with the total number of deals and deal value at 14 and $2.44 billion, respectively, data from private equity (PE) and venture capital database Venture Intelligence show. Buyout deal value more than doubled from $1.14 billion in the same period last year. The key sectors that contributed to the increase are information technology (IT) services, financial services and healthcare. The top buyout deals of the first half of 2016 included Blackstone Group LP’s $1.1 billion acquisition of a majority stake in listed IT firm Mphasis Ltd, Kedaara Capital and Swiss private equity (PE) firm Partners Group’s purchase of mortgage lender AU Financiers for around $140 million and Abraaj Group’s $221 million deal to buy Care Hospitals .  Reasons for I...

If Venture Capital (VC) investors are busy chasing Internet & Mobile companies, how are their Private Equity cousins keeping busy? Some of them at least are gobbling up food businesses: Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

From an Economic Times article titledd "Do PE firms make bad chefs?" citing the problems at Adiga's, Sagar Ratna and Nirula's. Prudent investment metrics back PE's thinking in grabbing pieces of the Rs 1,00,000 crore Indian restaurant industry. The industry is growing at a brisk 20 per cent a year. But, only about one-seventh of the industry is organised, says Technopak Advisors. And even some of that suffers from a hangover of its unorganised past, where cash deals were the norm, where contracts were a matter of spoken word and where much pivoted around the promoter. It was in this complex concoction that restaurant promoters and PE shook hands. Promoters wanted PE capital to grow. And PE came in with the understanding that the path to that growth flowed through processes, standardisation and corporatisation -- essentially, organising the unorganised. A critical factor in this transition is promoter buying. "The promoters should continue to...

ET has a profile following the Paras Pharma buyout. Actis bought an ownership stake in Punjab Tractors,the tractor company owned by the Punjab government."When we started investing in India,India was entirely a growth market," says Trivedi, who heads the South Asian operations of Actis."We started doing buyouts because we realised many promoter families were no longer interested in running their businesses." Yet,buyouts have been few and far between,even for Actis.According to Venture Intelligence,an aggregator of data on deals,PE funds have done 2,085 transactions in India between 2005 and 2010.Of these,just 76,or 3.6%,have been buyouts;the remaining 2,009 have been growth deals. Three PE firms stand out in the buyout space: Actis,ICICI Venture and Blackstone.Of the three,Actis leads with eight buyouts with a total deal value of $495 million.That buyout number is a fraction of the 37 deals Actis has closed in India. ...Trivedi,58,is the face of Actis in India. But...