Capital Markets

The EY-IVCA Monthly PE/VC Roundup – April’19

January 2019 recorded US$1.8 billion in PE/VC investments, 49% lower compared to January 2018 and 43% lower compared to the previous month, despite a 65% increase in the number of…

The EY-IVCA Monthly PE/VC Roundup – April’19

January 2019 recorded US$1.8 billion in PE/VC investments, 49% lower compared to January 2018 and 43% lower compared to the previous month, despite a 65% increase in the number of deals on a Y-o-Y basis. This decline was mainly on account of absence of a large US$1 billion plus deal in January 2019, whereas both January 2018 and December 2018 had one large US$1 billion plus deal each. This has effectively skewed the headline number by a wide margin.

► July 2018 recorded US$1.5 billion in deal value, at par with investments recorded in July 2017. In terms of deal volume, investment activity increased by 50% to 63 deals in July 2018, compared to 42 in July 2017.

► Breaking away from recent trends, July 2018 recorded fewer large size deals. There were three deals of value > US$100 million (cumulatively worth US$402 million) in July 2018, accounting for only 26% of total investments as against a 65% investment share in June 2018.

► July 2018 recorded US$1.5 billion in deal value, at par with investments recorded in July 2017. In terms of deal volume, investment activity increased by 50% to 63 deals in July 2018, compared to 42 in July 2017.

► Breaking away from recent trends, July 2018 recorded fewer large size deals. There were three deals of value > US$100 million (cumulatively worth US$402 million) in July 2018, accounting for only 26% of total investments as against a 65% investment share in June 2018.

► The fewer number of large deals in July is no indication of a trend, as there are many mega deals in the works, the most prominent being the recently announced US$4.2 billion acquisition of Arysta LifeScience, an agrochemicals company by UPL Limited. Press reports seem to indicate that UPL is looking to part-fund this acquisition by raising funds from large PE funds.

► TPG was the most active PE investor in July 2018 and announced four deals, including a US$105 million investment in Sai Life Sciences Limited for a 35% stake, US$40 million investment in e-commerce platform Livespace and co-investments with a group of other investors in online ticketing platform Bookmyshow and an NBFC, Five Star Business Finance Limited.

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