Showing an uptick in investment activity, private equity investments jumped to $16.7 billion in the first nine months of calendar year 2015 (CY15), with the total deal value at around 1.1 times the PE deal value in the full CY14, the latest report from Bain & Co shows. During the period, PE exits also improved to $4.8 billion, with the top 10 exits accounting for around 40% of the total PE exits.
While the top 10 deals made up nearly 25% of the total PE deal value up to the third quarter, the average deal size rose 19% to about $21 million.
There was also an overall growth in number of deals from 586 to 782. Early- and growth-stage investments continued to be popular options, with early-stage investments comprising around 67% of all deals. Consumer technology, real estate and BFSI were the key sectors of interest, accounting for around 65% of the deal flow, the report said.
According to Bain & Company, the top deals in the consumer technology space included Flipkart’s $700-million funding led by Tiger Global and Paytm’s $635-million deal led by Alibaba and SAIF Partners. In the real estate segment, StanChart private equity and GIC are among the top real estate investors. Shriram City Union Finance’s investment of $386 million was the biggest investment in the BFSI sector.
Private equity exits touched $4.8 billion, with top 10 exits together constituting around 40% of the total private exits in the first nine months of CY15. Exit via the public market continued to be the preferred mode for the PE players. The top exits up to the third quarter of the current calendar year include TPG Capital selling stake in Shriram City Union Finance for $386 million, New Silk Route offloading its shares in PNB Housing Finance for $257 million and IL&FS India Realty Fund exiting QVC Realty for $233 million, as per Bain & Company.