3Q19 saw Private Equity/Venture Capital investments of $16.4 bn in India: EY

The July-August-September quarter of calendar 2019 has witnessed private equity (PE) and venture capital (VC) investments in the country to the tune of $16.4 billion across 289 deals, highest ever value of PE/VC investments in any quarter, as per a deal round-up report released by EY.

The total value of PE/VC investments in 2019 till date stood at $40.3 billion, 7.4% higher than the investments recorded in entire 2018. Q3 also recorded exits worth $3.9 billion across 37 deals, 78% lower compared to last year which had seen one of India’s largest PE/VC exit, the historic $16 billion Flipkart-Walmart deal.

Vivek Soni, Partner and National Leader Private Equity Services, EY said, “At $16.4 billion, 3Q19 has recorded the best quarterly performance ever for PE/VC investments across all three main asset classes of private capital – PE, infrastructure and real estate. The deal flow in 2019 has been good with each successive quarter being better than the preceding one. The strong growth was primarily driven by investments in the infrastructure sector that accounted for 32% of all PE/VC investments in 2019 compared to 12% in 2018.''

However, unlike investments, exits have not had the same momentum as seen in 2018. In 2019, year-to-date PE/VC exits total $8.1 billion vs. $8.5 billion for the same period last year (excluding the mega $16 billion Flipkart deal). Nonetheless, at $3.9 billion, 3Q19 has been the best quarter so far for exits in 2019 helped by the large $1.5 billion partial buyback by OYO’s founder from the Company's early stage investors, said the EY deal tractor report.

On a quarterly basis, investments in 3Q19 increased by 69% in terms of value compared to 3Q18 and 37% compared to 2Q19 ($16.4 billion in 3Q19 vs. $9.7 billion in 3Q18 and $12 billion in 2Q19) and this is the best quarterly performance ever, said EY. In terms of volume, deals increased by 51% compared to 3Q18 and were at par compared to 2Q19 (289 deals in 3Q19 vs. 191 deals in 3Q18 and 299 deals in 2Q19). All the quarters of 2019 have recorded a strong growth in deal activity compared to the corresponding quarters in 2018, it said.

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Printable version | May 25, 2020 10:57:39 AM |

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