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December 30, 2016

Infra & Financial Sector deals cushion fall in PE investments during 2016 to 12%

At $15.2 Billion, 2016 is 2nd Biggest Year for PE investments after 2015, Venture Intelligence data shows 


Private Equity investors bet $15.2 Billion across 620 deals (and 585 individual companies) in 2016 making it the second biggest year for such investments in India (by both value and volume) after 2015 (which had witnessed $17.3 Billion being invested across 775 transactions and 683 companies). These figures from Venture Intelligence, India’s longest serving research service focused on private company financials, transactions and valuations, include Venture Capital investments, but exclude PE investments in Real Estate.

Infrastructure investments - notably led by Canada headquartered investors - dominated the list of Big Ticket investments during 2016. Canada’s Brookfield committed $1.65 Billion to buy a majority stake in telecom tower firm Reliance Infratel; pension fund CDPQ along with others invested $850 million in Tata Power’s SPV Resurgent Power; while Fairfax Holdings invested over $300 million each in Bangalore International Airport and Sanmar Chemicals.

TOP PRIVATE EQUITY INVESTMENTS BY VALUE IN 2016

Company
Sector
Amount
(US$M)
Investors
Date
Reliance Infratel
Telecom Towers
1,650
Brookfield
Oct-16
MphasiS
IT Services & BPO
1,100
Blackstone
Apr-16
Resurgent Power
Power Projects
850
CDPQ, KIA, SGRF, Others
Jun-16
BIAL
Airport
370
Fairfax Holdings
Mar-16
Sanmar Group
Chemicals
300
Fairfax Holdings
Apr-16
GE Capital Services
Commercial Lending
300
AION Capital, Others
Mar-16
Paytm / One97
Mobile Wallet & Commerce
300
MediaTek, Alibaba, SAIF
Aug-16

Financial Sector Supplants E-Commerce

IT & ITES companies, which attracted $4.7 Billion (across 359 transactions) in 2016, saw their share of the PE investment pie decline sharply to 31% (from 45% in 2015). BFSI (Banking, Financial Services & Insurance) companies that attracted over $2.7 Billion (across 53 transactions) during 2016, gained the most YoY attracting 18% of the pie (up from 15% in 2015).

While 2016 saw seven B2C Internet & Mobile investments with value topping $100 million (half of that in 2015), PE investors made as many as 11 such bets in the Financial Sector (adding to the already strong 10 such deals they struck in 2015).

PE INVESTMENTS BY INDUSTRY – RISING SHARE OF BFSI



TOP INVESTMENTS IN FINANCIAL SECTOR IN 2016

Company
Sector
Amount
(US$M)
Investors
Date
GE Capital Services
Commercial Loans
300
AION Capital, Others
Mar-16
SBI Life
Insurance (Life)
265
Temasek, KKR
Dec-16
Janalakshmi Financial Services
Microfinance
210
Morgan Stanley, GIC, TPG Capital, Others
Feb-16
India Infoline Finance
NBFC
149
CDC Group
Jul-16
Au Housing Finance
Mortgage Loans
140
Partners Group,
Kedaara Capital
Feb-16
Max Financial Services
Insurance (Life)
140
KKR
Feb-16

TOP INVESTMENTS IN INTERNET & MOBILE SECTOR IN 2016

Company
Sector
Amt
(US$M)
Investors
Date
Paytm / One97
Mobile Wallet & Commerce
300
MediaTek, Alibaba, SAIF
Aug-16
Snapdeal
E-Commerce
200
Ontario Teachers Pension
Feb-16
Hike
Mobile Messaging
175
Tencent, Foxconn,
Tiger Global
Aug-16
BillDesk
Payments Processing
171
General Atlantic, Temasek
Mar-16
BigBasket
E-Commerce (Groceries)
150
Abraaj Group, IFC,
Sands Capital, Others
Mar-16
CarTrade
Auto Classifieds
145
Warburg PIncus, Temasek, March Capital
Feb-16


Biggest Year for Buyouts



PE investors bet as much as $4.3 Billion to acquire controlling stakes in 27 companies - the highest ever tally for buyout deals in the country (surpassing the $3.2 Billion across 24 companies in 2015). In fact, Buyouts were the only stage of PE investment to register a gain during 2016 as compared to 2015.

In the largest PE deal of the year (and the largest single PE investment in India to date), publicly listed Reliance Communications sold a 51% stake in its tower assets unit Reliance Infratel to Canada's Brookfield Infrastructure Group for $1.65 Billion (INR 11,000 crore).

US-headquartered PE giant Blackstone concentrated its only investment bet in India during 2016 (outside of Real Estate) on buying out Hewlett Packard from its majority holding in listed IT Services & BPO firm Mphasis via an $1.1 Billion deal. AION Capital partnered former GE Capital executives Pramod Bhasin and Anil Chawla to buyout the commercial lending business of GE Capital in India for $300 million.

Mid Market buyouts too buzzed with activity during the year with 21 deals being struck across sectors like Healthcare (2 clinics and 1 CRO), Toll Roads (3 deals), BPO (2) and Food & Beverages (2), the Venture Intelligence analysis showed.


TOP PE BUYOUT DEALS IN 2016

Company
Sector
Amount
(US$M)
Investors
Date
Reliance Infratel
Telecom Towers
1650
Brookfield
Oct-16
MphasiS
IT Services & BPO
1100
Blackstone
Apr-16
GE Capital Services
NBFC
300
AION Capital, Others
Mar-16
Sigma Electric
Metal Castings
250
Argand Partners
Oct-16
Care Hospitals
Hospitals
221
Abraaj Group
Jan-16
Au Housing Finance
Mortgage Loans
140
Partners Group,
Kedaara Capital
Feb-16

The above data are extracts from the Venture Intelligence 2016 PE Roundup Report based on latest data from the Venture Intelligence PE Deals database. The full Report will be mailed to Venture Intelligence subscribers in the next few days.

December 29, 2016

PE and VC firms raised $4.9 billion via India-focused funds in 2016: Mint

A Mint article quotes Venture Intelligence data on fund raising in 2016:


Private equity (PE) and venture capital (VC) firms set new fund-raising milestones and raised a combined $4.9 billion in 2016 across 33 India-dedicated funds, according to research and analytics firm Venture Intelligence. This was 9% more than the corresponding figure in 2015, when a total of $4.5 billion was raised by PE and VC firms across 27 deals.
The top five PE and VC funds in 2016 raised about $3.35 billion, up from $2.4 billion by the top five funds last year, Venture Intelligence data showed. 


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

December 28, 2016

Venture capital market: The year that went by - Mint

A Mint article on VC trends in 2016 quotes Venture Intelligence data on VC exits.
Limited partners, however, remain concerned about poor returns on their past investments. In a bid to alleviate those concerns, fund managers at venture capital firms went into overdrive to shore up exits. The numbers for the closing quarter of 2016 are yet to come in. However, in the nine months of the year ended September, venture capital firms closed 54 exit deals worth $1.41 billion, exceeding the 43 exit deals worth 1.39 billion closed in all of 2015, according to data compiled by Chennai-based researcher Venture Intelligence.
Click here to continue reading.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

December 25, 2016

Dealmaking in 2016: Mint

The Mint article quotes Venture Intelligence data on buyout deals in 2016. Increasing amount of dollars flowing into buyout deals has been one of the larger trends seen in 2016:
 Buyouts showed strong momentum in the first six months of 2016, with the total number of deals and deal value at 14 and $2.44 billion, respectively, data from private equity (PE) and venture capital database Venture Intelligence show. Buyout deal value more than doubled from $1.14 billion in the same period last year. 
The top buyout deals of the first half of 2016 included Blackstone Group LP’s $1.1 billion acquisition of a majority stake in listed IT firm Mphasis Ltd, Kedaara Capital and Swiss private equity (PE) firm Partners Group’s purchase of mortgage lender AU Financiers for around $140 million and Abraaj Group’s $221 million deal to buy Care Hospitals.
From the Venture Intelligence PE/VC Deals Database: The year end figure for 2016 for buyout deals stand at 27 deals worth $4.3 Billion compared to 25 deals worth $3.1 Billion in 2015.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

Mint-Venture Intelligence Deal Tracker (Dec 19)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint. The Weekly update is featured in the Deals Section (Page 3) on every Monday.




Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

December 20, 2016

Laurus Labs: PE Backed IPO Analysis








Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.