1. Private equity funds create new record, invest $21.8 bn in Jan-Oct, 2017 period

Private equity funds create new record, invest $21.8 bn in Jan-Oct, 2017 period

Big-ticket deals over $500 million and bets by global pension funds have triggered a new high for private equity (PE) firms.

By: | Mumbai | Updated: November 8, 2017 5:17 AM
 According to EY’s monthly PE tracker for the month of October 2017, PE/VC activity posted a record high of .8 billion investments made across 496 deals in 2017 till date, surpassing the previous high of .6 billion across 767 deals recorded for the full year of 2015. According to EY’s monthly PE tracker for the month of October 2017, PE/VC activity posted a record high of .8 billion investments made across 496 deals in 2017 till date, surpassing the previous high of .6 billion across 767 deals recorded for the full year of 2015.

Big-ticket deals over $500 million and bets by global pension funds have triggered a new high for private equity (PE) firms. According to EY’s monthly PE tracker for the month of October 2017, PE/VC activity posted a record high of $21.8 billion investments made across 496 deals in 2017 till date, surpassing the previous high of $19.6 billion across 767 deals recorded for the full year of 2015. Until now, 2017 has recorded seven such deals aggregating $8.6 billion, of which four deals were of value greater than $1 billion. In contrast, 2016 recorded two deals aggregating $2.5 billion, while 2015 recorded four deals aggregating $2.2 billion. October recorded a 77% increase in the value of investments, while in terms of volume, it decreased 6.6% compared to the same period last year ($2.1 billion across 56 deals in October 2017 vs $1.2 billion across 60 deals in October 2016). On a month-on-month basis, there was an increase of 16.7% in value terms and 19.1% in terms of volume. Two large deals accounted for 71% of the total deal value. The largest deal saw Tencent and Softbank investing $1.1 billion in Ola cabs to be used towards investments into supply and technology, followed by CDPQ, investing $400 million in Logos India Ventures. Till date, 2017 has recorded four investments of value greater than $1 billion compared with just one last year.

In terms of deal type, October recorded the highest value and volume of investments into start-ups in a given month in 2017 ($505 million across 34 deals).

From a sectoral point of view, e-commerce topped the charts with $1.2 billion recorded across 10 deals, followed by Logistics, which recorded the highest ever monthly investment at $408 million across two deals.

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