ey regular presentation - ivca … · 41 deals in 3q18). 3q18 had recorded the large us$16 billion...

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The IVCA-EY monthly PE/VC roundup –September 2019

Discipline? Flexibility?

14 October 2019 EY analysis of VCCEdge data

Our thoughts

“At US$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. As a result, PE/VC investments in 2019 stood at US$40.3 billion at the end of the third quarter, 7.4% higher than investments recorded in entire 2018. 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. With increasing interest from large global pension and sovereign wealth funds combined with evolution of new investment structures like InvITs and REITs, we continue to project sustained growth in real asset investments in India.

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

The Government’s step to rationalize the corporate tax rate and introduce positive changes to the FPI policy are steps in the right direction, and increase attractiveness of India for long term capital investment relative to it's emerging markets peers. In our view, notwithstanding headwinds like volatile oil prices, global trade relationships between the US and China, and stress in India’s credit ecosystem, Indian PE/VC industry continues to make sizeable commitments and India appears to be on track to develop into one of the large PE/VC markets globally.”

InvIT – Infrastructure investment trust, REIT – Real estate investment trust



What will you invest in as investing changes?

Quarterly trend analysis – 3Q2019


Key trends: quarterly

Investments

► On a quarterly basis, investments in 3Q19 increased by 69% in terms of value compared to 3Q18 and 37% compared to 2Q19 (US$16.4 billion in 3Q19 vs. US$9.7 billion in 3Q18 and US$12 billion in 2Q19) and this is the best quarterly performance ever. 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.

► The outperformance of PE/VC investments in 3Q19 is mainly attributable to the record level of investments worth US$7.8 billion in the infrastructure and real estate asset classes, which is 4.4 times the value recorded in 3Q18. As a result, these two asset classes have together accounted for 48% of all PE/VC investments in 3Q19 compared to 18% in 3Q18.

► While investments in real estate in 3Q19 (US$2.5 billion) increased by 194% over 3Q18 (US$863 million), PE/VC investments in the infrastructure sector have made the greatest impact. Investments in the infrastructure sector in 3Q19 are at US$5.3 billion, which are 5.9 times the value invested in 3Q18.

► Large deals (value greater than US$100 million) continue to drive the growth of PE/VC investments. 3Q19 recorded 40 large deals aggregating to US$12.7 billion (compared to 17 large deals aggregating to US$6.6 billion in 3Q18), the highest number of large deals in any quarterly period. In 3Q19, 14 out of the 40 large deals were in the infrastructure (five deals) and real estate (nine deals) sectors and were worth US$7.4 billion. Additionally, six out of the top 10 deals in 3Q19 were in the infrastructure (three deals) and real estate (three deals) sectors.



Investments (cont’d)

► Brookfield’s buyout of Reliance Jio’s tower arm for US$3.7 billion was the largest deal in 3Q19, followed by Baring PE Asia’s buyout of CitiusTech Healthcare Technology Private Limited for US$800 million and GIC’s US$631 million investment in IRB Infrastructure Developers’ roads platform.

► Buyout as a strategy for PE/VC investment continues to gain prominence. 3Q19 recorded 17 buyouts aggregating to US$7.4 billion, the highest value and number of buyouts in any quarter ever. In terms of value, buyouts in 3Q19 were 2.9 times that of 3Q18 and in volume, they were 55% higher compared to 3Q18. In 3Q19, buyouts in infrastructure and real estate together accounted for 36% of the total buyouts by value and 59% by volume. Five out of the top 10 deals in 3Q19 were buyouts.

► From a sector point of view, in 3Q19, infrastructure leads with investments worth US$5.3 billion in 10 deals, which is more than 5.9 times the value recorded in 3Q18. Real estate sector is next in line with US$2.5 billion invested across 19 deals in 3Q19, which was 2.9 times the value recorded in 3Q18, followed by financial services with US$2.5 billion invested across 63 deals.



Exits

► On a year-on-year (yoy) basis, exits declined by 78% in terms of value in 3Q19 (US$3.9 billion vs. US$18 billion in 3Q18) and 10% in volume (37 deals vs. 41 deals in 3Q18). 3Q18 had recorded the large US$16 billion Flipkart-Walmart deal. If we exclude this deal, exits in 3Q19 are almost two times the value recorded in 3Q18. However, compared to 2Q19 (US$2.9 billion), exits have increased by 34% in 3Q19, mainly due to OYO’s founder Ritesh Agarwal’s move to buyback stakes worth US$1.5 billion held by Lightspeed and Sequoia, which was also the largest exit in 3Q19. In addition to this, Ritesh also made a primary infusion of US$500 million in OYO.

► Exits via buyback were also the highest at US$1.7 billion due this buyback. Exits via secondary sale (sale to other PE funds) recorded US$1.2 billion (10 deals) in 3Q19, 7% higher in terms of value compared to 3Q18. Exits via open market recorded US$792 million (10 deals) in 3Q19, 23% higher compared to the value recorded in 3Q18. Exits via strategic sale recorded US$160 million (six deals) in 3Q19, 99% lower than the value recorded in 3Q18 which had recorded the large Flipkart-Walmart deal. There was one PE-backed IPO in 3Q19 which saw Kedaara Capital, Helion Venture Partners and Valiant Capital sell their stake worth US$88 million in Spandana Sphoorty Financial Limited.

► From a sector perspective, e-commerce recorded the highest value of exits in 3Q19 (US$1.5 billion across three deals), followed by financial services (US$726 million across five deals) and healthcare (US$438 million across two deals).

Fund raise

► 3Q19 saw US$2.3 billion in fund raise, 11.5% lower compared to 3Q18. The largest fund raise in 3Q19 saw Kotak Special Situations Fund raise US$1 billion for investment into stressed assets. New fund raise plans announced in 3Q19 stood at US$2.7 billion compared to US$3.7 billion in 3Q18.


PE/VC quarterly headline trends: investments

4,179 6,096 8,693 7,205 8,307 11,146 9,703 8,325 11,736 11,964 16,358

129 165 138 163 182

194 191 205 242

299 289

-

100

200

300

400

-

5,000

10,000

15,000

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Total PE/VC investments

Value (US$m) # of deals

3,871 4,427 5,606 5,242 5,174 8,610 7,944 6,643 6,805 5,403

8,571 253 1,053

2,242 1,440 1,474

840 863 1,464 1,423

2,410

2,533

54 617

846 523 1,659

1,695

895 218 3,507 4,151

5,254

-

3,000

6,000

9,000

12,000

15,000

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

PE/VC investments: split across asset classes

PE/VC investment (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)

US$m

#US$m

US$m

Real estate includes deals across real estate (residential and commercial), hospitality and constructionInfrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure


1,793 2,570 3,947 3,392 1,328 3,829 17,994 2,066 967 2,641 3,675

184

111

276 236

262

354

92

201

269

56

327

161

234

844

133

104

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

PE/VC exits: split across asset classes

Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)

US$m

139

2,033 2,681 4,550 3,789 1,824 4,673 18,016 2,420 1,192 2,946 3,945

61 70

65 64

51 51 41

32 36 42

37

-

20

40

60

80

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Total PE/VC exits

Value (US$m) # of exits

PE/VC quarterly headline trends: exits

US$m #US$m

US$m



US$m

PE/VC quarterly headline trends: fund raise

1,287 719 2,234 1,533 1,304 1,701 2,607 2,479 2,794 2,749 2,335

11 9

13 11 11

12

17

11

14 15

12

-

5

10

15

20

-

1,000

2,000

3,000

1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Fund raise

Total funds raised (US$m) Total # of funds raised

#US$m


Investments (excluding infrastructure and real estate)

297

298

755

1,385

5,209

421

407

1,073

1,297

5,373

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size US$m

77

20

23

16

12

114

26

29

17

26

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size #

3,560

2,155

80

2,053

96

2,336

2,534

1,639

1,544

518

Expansion/Growth

Start-up/Early stage

PIPE*

Buyout

Credit investment

Deal type US$m

56

92

6

10

12

59

164

15

7

15

Expansion/Growth


PIPE*

Buyout

Credit investment

Deal type #

7,944

8,571

3Q2018

3Q2019

Total investments (US$m)

176

260

3Q2018

3Q2019

# of deals

Note: Deal value was not disclosed on 48 out of 260 deals in 3Q2019 and 28 out of 176 deals in 3Q2018

* PIPE: private investment in public equity


2

893

10

13

198

5,033

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size US$m

1

2

2

1

2

5

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size #

363

2

530

1,430

151

3,673

Expansion/Growth


PIPE*

Buyout

Credit investment

Deal type US$m

895

5,254

3Q2018

3Q2019


3

10

3Q2018

3Q2019

# of deals

Investments: infrastructure

1

1

1

7

1

2

Expansion/Growth


PIPE*

Buyout

Credit investment

Deal type #


Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure


1

30

296

536

11

13

124

53

2,332

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size US$m

2

2

3

3

2

1

4

1

9

<US$10m

US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal size #

347

30

486

203

95

2,182

53

Expansion/Growth


PIPE*

Buyout

Credit investment

Deal type US$m

863

2,533

3Q2018

3Q2019


12

19

3Q2018

3Q2019

# of deals

6

2

4

4

6

8

1

Expansion/Growth


PIPE*

Buyout

Credit investment

Deal type #

Investments: real estate

Note: Deal value was not disclosed on 2 out of 19 deals in 3Q2019 and 2 out of 12 deals in 3Q2018


Real estate includes deals across real estate (residential and commercial), hospitality and construction


3Q2019 investments: sector-wise

3,141

152

240

2,159

636

-

863

895

2,197

607

643

819

1,804

2,500

2,533

5,254

Others

Education

Media and entertainment

E-commerce

Technology

Financial services

Real estate

Infrastructure

Top sectors by value (US$m)

17

15

14

7

6

8

12

15

30

41

26

38

10

11

12

13

18

19

21

27

57

63

Others

Infrastructure

Media and entertainment

Healthcare

Business and professional services

Retail and consumer products

Real estate

Food and agriculture

E-commerce

Technology

Financial services

Top sectors by # of deals

3Q2019 3Q2018



Top PE/VC investments excluding infrastructure and real estate in 3Q2019

Company/Project PE investors Sector Stage US$m Stake (%)

CitiusTech Healthcare Technology Private Limited

Baring PE Asia Technology Buyout 800 80

Zee Entertainment Enterprises LimitedInvesco Oppenheimer Developing Markets Fund

Media and entertainment PIPE 613 11

Hiveloop Technology Private Limited (Udaan.com)

GGV Capital, Altimeter Capital, Hillhouse Capital, Lightspeed Partners & others

E-commerce Early stage 300 NA

Future Lifestyle Fashions Limited BlackstoneRetail and consumer products

PIPE 250 7

Ola Electric Mobility Private Limited Softbank Automotive Growth capital 248 NA

EuroKids International Private Limited KKR Education Buyout 200 90

Indecomm Corporation Warburg PincusBusiness and professional services

Buyout 200 100

AppnomicSystems, ElasticRun, Zenoti, CRMNext, Manthan System and Capillary Technologies#

Avataar Venture Partners backed by Harbourvest

Technology Early stage 200 NA

Cholamandalam Investment and Finance Company Limited

Overseas Private Investment Corporation (OPIC)

Financial services Credit investment 185 NA

Aakash Educational Services Limited Blackstone Education Growth capital 180 38

Sintex Np Sas Africinvest, Sigefi Private Equity Industrial products Buyout 174 100

DFM Foods Limited Advent Food and agriculture Buyout 164 94

Better Mortgage CorporationActivant Capital, Goldman Sachs, Ontario Pension Plan & others

Financial services Early stage 160 NA

Top PE/VC investments

# This is a portfolio sale of six investee companies by Norwest


Top infrastructure and real estate investments in 3Q2019


Indiabulls Real Estate’s commercial properties

Blackstone Real estate Buyout 624 50

Two existing malls and an upcoming retail development project

Virtuous Retail, a APG Management -Xander JV

Real estate Buyout 550 NA

Coffee Day’s Global Village Tech Park Blackstone Real estate Buyout 400 100

Greenko Energy HoldingsGIC, Abu Dhabi Investment Authority (ADIA)

Power and utilities Growth capital 392 NA

Lodha Group's office building in Mumbai Varde Capital Partners Real estate Buyout 155 81

Sterling and Wilson Solar Limited Abu Dhabi Investment Authority (ADIA) Real estate Growth capital 151 9

Godrej BTC Allianz Real Estate Real estate Growth capital 150 NA

IT Citi Infopark Private Limited The Xander Group Real estate Buyout 131 100

Real estate platform with Ahuja Group Fosun Group Real estate Buyout 112 NA

Mars Enterprises and Hospitality Limited (real estate asset)

Brookfield Real estate Buyout 109 >50

An office building in Mumbai of L&T Realty Limited





Top InvIT investment deals in 3Q2019


Reliance Jio Infocomm Limited, Tower Arm Brookfield Infrastructure Buyout 3,660 >50

L&T IndInfravit Trust -Sadbhav Infrastructure Project Limited

Canada Pension Plan Investment Board (CPPIB)

Infrastructure Growth capital 200 NA

IRB Infrastructure Developers Limited, Road Platform InvIT

GIC Infrastructure Growth capital 631 NA



559

18

189

13

746

491

602

164

203

269

438

726

1,543

Others


Technology

Real estate

Healthcare

Financial services

E-commerce

Top sectors US$m

16,559

16,000

18

3

4

8

7

1

16

3

3

4

5

6

Others

E-commerce

Retail and consumer products

Technology

Financial services

Real estate

Top sectors #

143

14

1,135

647

88

1,687

160

1,218

792

IPO

Buyback

Strategic

Secondary

Open market

Exit type US$m

16,078

18,016

3,945

3Q2018

3Q2019

Total exits (US$m)

41

37

3Q2018

3Q2019

# of deals

2

1

15

9

14

1

7

9

10

10

IPO

Buyback

Strategic

Secondary

Open market

Exit type #

3Q2019 exits: analysis



Top exits

Top exits in 3Q2019

Company/Project Sector Sellers Buyer Exit type US$m Stake (%)

Oravel Stays Private Limited (OYO)

E-commerce Lightspeed, Sequoia Ritesh Agarwal Buyback 1,500 23.7

CitiusTech Healthcare Technology Private Limited

Healthcare General Atlantic Baring PE Asia Secondary 389 32

ICICI Lombard General Insurance Company Limited

Financial services Fairfax NA Open market 362 5

Appnomic Systems, ElasticRun, Zenoti, CRMNext, Manthan System and Capillary Technologies#

Technology Norwest Avataar Venture Partners backed by Harbourvest

Secondary 200 NA


Financial services Warburg Pincus NA Open market 194 3

DFM Foods Limited Food and agriculture Westbridge Advent Secondary 164 25

EuroKids International Private Limited

EducationGaja Capital and Partners Group

KKR Secondary 150 75

Delhivery Logistics Multiples CPPIB Secondary 150 8



Fund raise

Top fund raise in 3Q2019

Status Fund US$m Strategy

Raised Kotak Special Situations Fund 1,000 Non-performing assets

Raised Avataar Venture Partners 300 B2B tech start-up

Raised Lightbox Ventures 209 Early stage (consumer products)

Raised TVS Capital 160Finance services, business services and niche consumer services

Raised Investcorp 145 Consumer, financial services and healthcare

Raised Alteria Capital 140 Venture debt

Raised Dubai Startup Hub 100 Blockchain, AI, ML and Big Data Analytics

Raised DSG Consumer Partners 100 Retail and consumer products



Is disruption an imperative or an illusion?

Monthly trend analysis – September 2019


Investments

► PE/VC investments in September 2019 were 8% lower compared to September 2018 and 15% lower compared to August 2019 (US$3.7 billion in September 2019 vs. US$4 billion in September 2018 and US$4.3 billion in August 2019). In terms of number of deals, September 2019 recorded 55% higher deals compared to September 2018 and 16% higher compared to August 2019 (96 deals in September 2019 vs. 62 deals in September 2018 and 83 deals in August 2019).

► Investments in infrastructure and real estate asset classes accounted for 42% of the total PE/VC investments in September 2019.

► From the point of view of deal type, buyout deals recorded the highest value of investments at US$1.8 billion across seven deals, 2.3 times compared to the value recorded in September 2018 followed by growth capital investments at US$836 million across 23 deals. Start-up investments aggregated to US$603 million across 58 deals, accounting for 60% of the total number of deals in September 2019. There were three public investment in private equity (PIPE) deals worth US$185 million in September 2019.

► September 2019 recorded 11 large deals (value greater than US$100 million) aggregating US$2.6 billion compared to eight large deals worth US$2.9 billion in September 2018 and 15 large deals worth US$3.1 billion in August 2019. Three out of the top 10 largest deals in September 2019 were in infrastructure and real estate. Blackstone’s US$624 million investment in the commercial assets of Indiabulls was the largest deal in September 2019 followed by Virtuous Retail’s (a APG Management - Xander JV) US$550 million investment in three mall projects.

► From a sector point of view, real estate was the top sector for September 2019 with US$1.5 billion in investments. Financial services sector was second in line with investments worth US$994 million.

Key trends: monthly


Exits

► September 2019 recorded 17 exits worth US$2.6 billion compared to US$16 billion in September 2018, which included the large Flipkart-Walmart deal. Exits via buyback were the highest at US$1.5 billion followed by open market exits worth US$571 million across six deals and secondary exits worth US$523 million across four deals.

► The largest exit in September 2019 saw Ritesh Agarwal of OYO buyback stake worth US$1.5 billion from Lightspeed and Sequoia.

► From a sector perspective, e-commerce recorded the highest value of exits worth US$1.5 billion across one deals.

Fund raise

► September 2019 recorded total fund raises of US$654 million compared to US$288 million raised in September 2018. Fund raise plans worth US$495 million were announced in September 2019.

Key trends: monthly


PE/VC monthly headline trends: investments

4,022 3,336 1,801 3,187 1,777 2,875 7,084 4,445 3,719 3,799 8,428 4,326 3,694

62 64 69 72

88

63

91109

9892

110

8396

0

20

40

60

80

100

120

-

2,000

4,000

6,000

8,000

Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19

Total PE/VC investments

Value (US$m) # of deals

3,648 2,773

1,066 2,804

1,646 1,654

3,505 2,889 1,332 1,183

3,756 2,669 2,146

11 378

723

363 131

364

928

369

1,107 935

319

764 1,450

363 185

12

21 856

2,651

1,188 1,281 1,682

4,353

803 98

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


PE/VC investments: split across asset classes

PE/VC investments (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)

US$m

#US$m

US$m



16,029 1,364 676 381 331 472 389 1,174 753 1,019 616 680 2,649

9

1311

8 13

10

13 15

11

15

10 11

17

0

5

10

15

20

-

1,000

2,000

3,000


Total PE/VC exits

Value (US$m) # of exits

1,292

393 381 331 381 256

972 753 916 548 493

2,619 71

283 92

201

68 187

30

- 133

133

-

1,000

2,000

3,000


PE/VC exits - split across asset classes

Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)

US$m

PE/VC monthly headline trends: exits

16,029

#US$m

US$m



288 641 398 1,440 2,469 285

40 682 1,096 971 545 1,136 654

3

5

3 3

10

3

1

4

6 5

4 4 4

0

2

4

6

8

10

12

-

1,000

2,000

3,000


Fund raise

Total funds raised (US$m) Total # of funds raised

#US$m

PE/VC monthly headline trends: fund raise


194

150

200

205

403

994

Others

E-commerce

Business and professional services


Technology

Financial services

Top sectors by value US$m

18

6

8

10

21

25

Others

Healthcare


E-commerce

Technology

Financial services

Top sectors by volume

PE/VC investments: US$2,146 million over 88 deals (excluding infrastructure and real estate investments)

138 (41) 137 (9)

447 (12)

249(4)

1,174 (7)

<US$10m US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m

Deal value US$m (volume)

260 (5)

370 (3)

185 (3)

603 (56)

728 (21)

Creditinvestment

Buyout PIPE Start-up/Early stage

Growthcapital

Deal type US$m (volume)


10 (1)98 (1)

1441 (4)

<US$10m US$10m-US$20m

US$20m-US$50m

US$50m-US$100m

>US$100m


1,450

98

Real estate

Infrastructure

By value US$m

7

1

Real estate

Infrastructure

By volume

Infrastructure and real estate investments: US$1,548 million over 8 deals

1441 (4)

NA (2)107 (2)

Creditinvestment

Buyout PIPE Start-up/Early stage

Growthcapital

Deal type US$m (volume)

Note: Deal value was not disclosed on two out of eight deals in September 2019



Company/Project PE Investors Sector Stage US$m Stake (%)

Indecomm Corporation Warburg PincusBusiness and professional services

Buyout 200 100

Appnomic Systems, ElasticRun, Zenoti, CRMNext, Manthan System and Capillary Technologies#

Avataar Venture Partners backed by Harbourvest

Technology Early stage 200 NA

Cholamandalam Investment and Finance Company Limited

OPIC Financial services Credit investment 185 NA

DFM Foods Limited Advent Food and agriculture Buyout 164 94

Aditya Birla Capital Limited Premjiinvest, Advent Financial services PIPE 152 5

ETechAces Marketing and Consulting Private Limited (Policy Bazaar)

Tencent Financial services Growth capital 150 10

Aptus Value Housing Finance India LimitedWestbridge, Steadview Capital, Sequoia Capital, and Malabar India

Financial servicesGrowth capital

123 18


Top PE/VC investments excluding infrastructure and real estate in September 2019




Indiabulls Real Estate’s commercial properties


Two existing malls and an upcoming retail development project

Virtuous Retail, a APG Management - Xander JV

Real estate Buyout 550 NA

Lodha Group's office building in Mumbai Varde Capital Partners Real estate Buyout 155 81

Real estate platform with Ahuja Group Fosun Group Real estate Buyout 112 NA

Five under construction annuity model projects of Dilip Buildcon Limited

Cube Highways and Infrastructure Infrastructure Growth capital 98 100

Top infrastructure and real estate investments in September 2019

Top infrastructure and real estate investments



1515 (2)

40 (5)

523 (4) 571 (6)

IPO Buyback Strategic Secondary Open market

Deal Type US$m (volume)

49 (2)

164 (1)

225 (3)

565 (3)

1500 (1)

Retail and consumerproducts


Technology

Financial services

E-commerce


Exits: US$2,649 million across 17 deals in September 2019

Exits in September 2019



Top exits

Top exits in September 2019

Company/Project Sector Sellers Buyer Exit type US$m Stake (%)

Oravel Stays Private Limited (OYO)

E-commerce Lightspeed, Sequoia Ritesh Agarwal Buyback 1,500 23.7


Financial servicesFairfax Financial Holdings

NA Open market 362 5

Appnomic Systems, ElasticRun, Zenoti, CRMNext, Manthan System & Capillary Technologies#

Technology Norwest Avataar Venture Partners backed by Harbourvest

Secondary 200 NA


Financial services Warburg Pincus NA Open market 194 3

DFM Foods Limited Food and agriculture Westbridge Advent Secondary 164 25




Status Fund US$m Strategy

Raised Avataar Venture Partners 300 B2B tech start-ups

Raised Lightbox Ventures 209 Early stage (consumer products)

Raised JM Financial 85 Sector agnostic

Raised Fireside Ventures 60 Early stage (consumer products)

Announced Binny Bansal’s VC Fund 400 Early stage

Fund raise

Top fund raises/announcements in September 2019

About EY Private Equity Services


About EY’s Private Equity Services Practice

EY has been working with the private equity industry for more than 25 years, with approximately 25,000 seasoned professionals worldwide dedicated to the industry and its business issues. EY serves 74% of the top 300 PE firms included in the Global PEI 300 firms list. Private equity firms, portfolio companies and investment funds face complex challenges. They are under pressure to deploy capital amid geopolitical uncertainty, increased competition, higher valuations and rising stakeholder expectations. Successful deals depend on the ability to move faster, drive rapid and strategic growth and create greater value throughout the transaction life cycle. EY taps its global network to help source deal opportunities and combines deep sector insights with the proven, innovative strategies that have guided the world’s fastest growing companies.

In India, EY is among the leading providers of advisory, tax, transactions and assurance services. The organization is also the number one professional services brand* in India, which is a testimony to our relentless commitment to deliver exceptional client service and create a better working world. EY has 16 offices spread across 10 cities in India. Worldwide, our 247,570 people across 150+ countries and 700+ cities are united by our shared values and their unwavering commitment to quality.

► EY’s India Private Equity Services Practice has been among the top advisors for private equity deals over the past ten years. EY has been awarded the “Most Active Transaction Advisor” award by Venture Intelligence for 2009-2013 and also the “Investment Bank of the Year, Private Equity” award by VC Circle in 2012 and 2017. EY was also the top PE advisor in the Venture Intelligence league table in 2018.

► EY’s India Private Equity Services Practice provides value to PE funds and their portfolio companies through its deep sector and service expertise. EY India is organized around key industry verticals in a matrix structure that enables us to offer an unparalleled blend of industry expertise and functional skills. We actively track about 15 sectors with sector leads driving our penetration in each of those sectors.


Funds

Transaction Advisory Services

Portfolio Services

Fund assurance and management(Fund and fund management company audit, portfolio valuation, controls and process design and review, tax and regulatory compliance)

Buy and sell side advisory (M&A, capital markets support, tax structuring, regulatory compliance, SPA advisory, integrated sell side advisory – building equity story, vendor due diligence (VDD), structuring marketing)

Partners (Personal tax)

Fund Raising(Marketing collateral, fund structuring, audit of fund performance)

Growth (Strategic options, technology security, IT strategy, operational improvement, SCM, market entry options and working capital management)

Distressed (Debt syndication, bank intermediation, restructuring, working capital management, cost reduction, insolvency and bankruptcy advisory)

Transition(PMO, 100-days plan, transaction Integration, GAAP conversion, governance, controls assessment, MIS development, process advisory, standard operating procedures, CFO services and compliance manager)

Exit readiness (IPO, GAAP conversion, vendor due diligence, value creation, investor relations, exit preparation, sale mandates, exit structuring)

Buyside support (Due diligence – financial, tax, business and commercial, forensics and background, HR, IT and environmental, modeling and valuations)

Assurance (Statutory audit, tax compliance, risk management, corporate governance advisory, internal audits and fraud reviews)

Tax and Legal (Tax advisory, tax accounting, ESOP advisory, global mobility, transfer pricing and operating model effectiveness, tax policy and litigation, regulatory compliance)

EY services for Private Equity

We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service lines.

Contacts

Allwyn D’SouzaSenior ManagerE: [email protected]

Research and Insights

Vivek SoniPartner and National LeaderE: [email protected]

Private Equity Services

Ernst & Young LLP

EY | Assurance | Tax | Transactions | Advisory

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in.

Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata – 700016

© 2019 Ernst & Young LLP. Published in India. All Rights Reserved.

ED NoneEYIN1910-010

This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

About IVCA

IVCA

About IVCA

The Indian Private Equity & Venture Capital Association (IVCA), is the apex body promoting the Alternative Investment Funds (AIFs) in India and promotes stable, long-term capital flow (Private Equity (PE), Venture Capital (VC) and Angel Capital) in India.

With leading VC/ PE firms, institutional investors, banks, corporate advisers, accountants, lawyers and other service providers as members, it serves as a powerful platform for all stakeholders to interact with each other. Being the face of the Industry, it helps establish high standards of governance, ethics, business conduct and professional competence.

With a prime motive to support the ecosystem, it facilitates contact with policy makers, research institutions, universities, trade associations and other relevant organizations. Thus support entrepreneurial activity, innovation and job creation.

Rajat TandonPresident, IVCAE: [email protected]

Aakriti BamniyalSenior Vice President, IVCAE: [email protected]

Contacts

ey regular presentation - ivca … · 41 deals in 3q18). 3q18 had recorded the large us$16 billion...

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