The private equity (PE)/ venture capital (VC) investments between January to November 2018 aggregates to USD 27 billion, surpassing the high of USD 26.1 billion recorded in entire 2017.
The private equity (PE)/ venture capital (VC) investments between January to November 2018 aggregates to USD 27 billion, surpassing the high of USD 26.1 billion recorded in entire 2017. November recorded USD 1.6 billion in PE/VC investments, 33 per cent lower compared to November 2017 and 49 per cent lower compared to the previous month. “The decline was mainly on account of fewer large deals (greater than USD 100 million) with November 2018 recording only five large deals aggregating USD 950 million compared to nine large deals worth USD 1.8 billion in November 2017 and six large deals worth USD 2.5 billion in October 2018,” according to an EY report.
The largest deal during the month saw Temasek buyout SP Infocity IT Park from CPPIB and Shapoorji Pallonji for USD 353 million. The other large deals include GIC and TFL Pension Funds USD 159 million investment in Kotak Mahindra Bank and India Resurgent Funds USD 156 million investment in Archean Chemical Industries. Till the end of November 2018, buyouts have recorded USD 7.4 billion in investments across 37 deals, which is more than the value of buyouts in the previous two years combined (USD 3 billion in 2017 and USD 3.9 billion in 2016), it noted.
Start-up investments have also recorded a strong rebound in 2018, with USD 4.1 billion investments made till the end of November, 17 per cent higher than the value recorded in entire 2017. Till the end of November, PE/VC exits recorded USD 24.6 billion in value. Exits in November 2018, at USD 394 million, recorded significant decline compared to USD 2.7 billion recorded in the same month last year and USD 1.4 billion recorded in October 2018, mainly on account of fewer large exits. November 2018 witnessed USD 398 million in fund raises, compared to USD 675 million in the year-ago month.