The month of April witnessed a 46% rise in private equity (PE) deal values, compared to the same period last year, with the deal value rising to $3.84 billion
The month of April witnessed a 46% rise in private equity (PE) deal values, compared to the same period last year, with the deal value rising to $3.84 billion, according to a report by Grant Thornton.
“Contrary to mergers and acquisitions (M&A) deal activity, PE investors did not fail to impress with increased investment activity recording one “billion-dollar” investment and nine investments valued over $100 million each,” the report said.
An interesting trend witnessed this month was that PE players are forming special purpose vehicles (SPVs) to execute deals. Two of top six deals were executed through this route, Grant Thornton said.
Compared to March 2019, April 2019 recorded a strong 18% increase in deal volumes while values declined by 32%.
Since the beginning of the year, PE deal activity recorded a significant 74% increase in deal values despite a 10% drop in investment volumes, indicating increased average deal size. The year recorded the highest average deal size at $45 million for first four months in last eight years.
“The start-up sector accounted for almost half of PE investments volumes. It witnessed Tiger Global’s investment in Ninjacart, making it the largest funding in any Indian start-up till date by the US investment firm, and Dream 11, the sports platform, joining India’s mushrooming unicorn club following an investment,” the report stated.
Pankaj Chopda, director at Grant Thornton India, said considering May being the month of election results, the uncertainty in deal landscape is expected to soon fade away. “However, transactions to pare debt, closure of IBC-related transactions and transactions in pipeline indicate a silver lining for the rest of the year,” he said.