PE exits hit record in Q1: PWC report

The first quarter of 2016 was best-ever quarter for private equity exits in India, according to PWC’s Money Tree India report.

The quarter saw exits worth $2.59 billion in 35 deals, 50 per cent more than the previous quarter which saw exits worth $1.67 billion in 59 deals. The exits increased 29 per cent from $1.94 billion in 68 deals in Q1, 2015. The exits were mainly driven by $1.05 billion exit made by KKR from Alliance Tire Group. IT & ITeS saw exits worth $403 million in 11 deals, the data showed.

It also said strategic sales has become the most preferred route for exits this quarter, with a total exit value of $1.25 billion in 13 deals. Secondary sales followed with a total exit value of $624 million in 10 deals.

The data also showed a dip in private equity activity, as deals in the ecommerce space dried up.

The January-March quarter saw investments $3.10 billion in 160 deals, with average ticket size of $19.4 million. When compared to Q4 of 2015, the volume dropped by 15 per cent and value fell by 18 per cent respectively. The number of deals dropped 24 per cent when compared to first quarter of 2015, but the drop in value was moderate 2 per cent.

There has been a definite slowdown in the e-commerce, digital and consumer Internet deals

Sanjeev Krishan,Leader, PE, PWC India,