Capital Markets

In this quarter’s edition of Venture Pulse, we look at these and a number of other global and regional trends, including:

• The evolution of blockchain and its growing value across industries
• The strength and diversity of Europe’s VC market
• The rise of digital banks, including their global expansion plans
• The increasing importance of emerging economies to VC inve

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

April’19 has been another strong month for PE/VC investments, 79% higher than April’18. Although lower than the record high seen in…

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

April’19 has been another strong month for PE/VC investments, 79% higher than April’18. Although lower than the record high seen in March’19, it is the third best month for PE/VC investments in the past 12 months. As projected by us earlier in January, Infrastructure and Real Estate sectors continue to see strong PE/VC interest. PE/VC investments in Infrastructure in the period Jan-April 2019 add up to US$3.7 billion. In just four months, 2019 has surpassed the previous annual high seen in 2007. With eight more months to go and some large deals in the pipeline, we project 2019 to be a landmark year for PE/VC investments in the Indian Infrastructure sector.

The private real estate industry entered Q2 on the back of the best opening quarter in recent history. Both capital raised and deal flow were strong, and helping to drive investor appetite was the fact that distributions continued to exceed capital calls by a significant margin, demonstrating that the late cycle concerns were merely about perspective. Yes, to invest in this environment still presents significant challenges when valuations are continuing to rise, but many funds are sitting on record levels of dry powder, which means not only can they act quickly but can also effectively drive negotiations for attractive assets. For those that are ready to dispose of property, the demand is there from a wide variety of participants both locally and internationally.

So…

The private real estate industry entered Q2 on the back of the best opening quarter in recent history. Both capital raised and deal flow were strong, and helping to drive investor appetite was the fact that distributions continued to exceed capital calls by a significant margin, demonstrating that the late cycle concerns were merely about perspective. Yes, to invest in this environment still presents significant challenges when valuations are continuing to rise, but many funds are sitting on record levels of dry powder, which means not only can they act quickly but can also effectively drive negotiations for attractive assets. For those that are ready to dispose of property, the demand is there from a wide variety of participants both locally and internationally.

So, has this momentum continued into Q2? In a nutshell, no. Both fundraising and deal flow are not only down on Q1 results but are also relatively weak compared to recent quarterly levels. Even without the level of $1bn+ fundraises we saw in Q1, the average fund size remained high – a reflection of the bifurcation of the fundraising market. Further illustrating this point – despite the decline in aggregate deal value – Blackstone were able to close a deal on Gramercy Property Trust for $7.6bn, representing 12% of the total quarterly value.

In yet another display of Asia’s dynamism, 2017 ended with a flurry of activity across the region that showed few signs of abating as we entered the new year. While strength is broad-based across markets and sectors, the office segment in the key markets of Hong Kong, Shanghai and Singapore has been a particular focus for investors, reflecting an improving business outlook on the back of a rebound in investment, trade and manufacturing.

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.