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PE Roundup – June 2017

1H20172Q2017June 2017

Headline Trends

Key trends – Half Yearly

► Investments► PE/VC investments in India in the first half (1H2017) witnessed sharp increase on the back of some very large deals with size

of each of them in excess of USD 300 million.

► In 1H2017, investments increased 41% in value (US$ 11.2 billion Vs US$ 8.0 billion in 1H2016) despite a 3.9% decline in volume (298 deals Vs 310 deals in 1H2016).

► Both buyout (US$2.2 billion across 18 deals) and PIPE (US$1.9 billion across 23 deals) deals recorded strong growth in 1H2017 of 76% and 72% respectively, the best half yearly performance for buyout deals and the second best for PIPE deals in over 10 years. In terms of number of deals, Buyouts have been sequentially increasing with a record high of 18 buyouts in 1H2017.

► Aggregate deal value was dominated by minority growth capital with 41% of the aggregate investments (US$4.6 billion invested

across 78 deals in 1H2017, a growth of 35% compared to 1H2016).

► Early stage / VC deals continued to dominate the deal volumes accounting for 50% of all deals in 1H2017 similar to last year.

► Also, 1H2017 saw significant activity from Canadian pension funds. In aggregate, they invested US$2.1 billion across six deals in 2017.

► Financial Services, Technology and Real Estate were the leading sectors in terms of investments in 1H2017.

► Exits► Exits grew 53% by value in 1H2017 (US$ 4.8 billion Vs US$ 3.1 billion in 1H2016) and 50% by volume (129 deals Vs 86 deals

in 1H2016), best half yearly performance since 2009, mainly driven by increase in open market and secondary divestments.

► IPO markets have been quite active as well with 6 PE backed IPOs in 1H2017

► From a sector perspective Financial services (US$1.6 billion across 31 exits), Technology (US$1 billion across 13 exits) and Life sciences (US$756 million across 23 exits) were the top sectors for exits in 1H2017.

► Fund raise► The first half of 2017 saw US$2 billion in fund raise, 30% decline compared to 1H2016, but a 54% increase over 2H2016.

► New fund raise plans announced also declined by 36% to US$ 5 billion in 1H2017 compared to same period last year.

► However, there is plenty of liquidity in the market with global funds having greater allocations for India and keen to investmore in the country.

EY Analysis of VCCEdge Data

PE Half Yearly Roundup – 1H2017

PE/VC headline trends – Half Yearly

US$ mn #

2,072 3,910 2,564 3,140 3,528 4,809

97119

135

86

123 129

0

50

100

150

-

2,000

4,000

2H2014 1H2015 2H2015 1H2016 2H2016 1H2017

Exits

1,749 3,830 2,610 3,017 1,296 2,006

15 1620

30

11

20

0

10

20

30

40

-

2,000

4,000

2H2014 1H2015 2H2015 1H2016 2H2016 1H2017

Fund Raise

US$ mn #

US$ mn #

7,511 8,589 11,046 7,968 8,235 11,240

239

369 398

310 278 298

0

100

200

300

400

500

-

3,000

6,000

9,000

12,000

2H2014 1H2015 2H2015 1H2016 2H2016 1H2017

Investments


34

12

14

160

90

29

18

23

150

79

Debt investment

Buyout

PIPE Financing

Start-up/ Early Stage

Expansion/ GrowthCapital

Deal Type #

Investments – H1 Analysis

** Deal value not available on 53 out of 298 deals in 1H2017 and 60 out of 310 deals in 1H2016

7,968

11,240

1H2016

1H2017

Total Investment US$m

1,212

1,240

1,103

1,050

3,363

945

2,184

1,900

1,475

4,555

Debt investment

Buyout

PIPE Financing



Deal Type US$m

519

560

1,125

1,633

4,130

543

526

1,000

1,704

7,287

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size US$m

138

37

34

23

18

137

34

29

23

22

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size #

310

298

1H2016

1H2017

No. of Deals


Investments – H1 Sector Cut

*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products

213

122

362

498

307

1,071

-

1,321

1,233

1,380

269

352

353

369

402

617

1,012

1,256

1,941

3,400

RCP

Logistics

Power and utilities

Infrastructure

Healthcare

Ecommerce

Telecom

RHC

Technology

Financial services

Top Sectors US$m1H2017

1H2016

3

2

8

7

14

35

14

53

39

61

2

3

5

15

17

18

20

26

51

69

Telecom

Power and utilities

Infrastructure

Logistics

RCP

RHC

Healthcare

Ecommerce

Financial services

Technology

Top Sectors #


Top Investments

Top Investments in 1H2017

Company PE Investor Sector Stage US$mnStake

(%)

Paytm SoftBank Financial servicesExpansion/ Growth

1,400 NA

Bharti Infratel Ltd. KKR,CPPIB Telecommunications PIPE Financing 956 10.3

GlobalLogic CPPIB TechnologyExpansion/ Growth

720 48.0

IndoSpace CPPIB RHC Buyout 500 NA

ICICI LombardWarburg Pincus, Clermont Group , IIFL Special Opportunities Fund

Financial servicesExpansion/ Growth

383 12.2

Tata Technologies Ltd Warburg Pincus TechnologyExpansion/ Growth

360 43.0

Kotak Mahindra Bank CPPIB, CDPQ Financial services PIPE Financing 342 1.5

Princeton Growth Ventures Warburg Pincus TechnologyStart-up/ Early Stage

300 NA

Aegis Ltd Capital Square Technology Buyout 275 100.0

Oyo Rooms SoftBank EcommerceStart-up/ Early Stage

250 15.0

Hindustan Powerprojects Macquarie Group Power and utilities Buyout 250 100.0


Exits – H1 Analysis


3,140

4,809

1H2016

1H2017

Total Exits US$m

86

129

1H2016

1H2017

No. of Deals

409

103

4

218

225

488

295

324

360

396

976

1,577

RHC

CBP

Pharmaceuticals

Healthcare

Technology

FinancialServices

Top Sectors US$m

11

2

2

7

18

8

10

4

7

16

12

31

RHC

CBP

Pharmaceuticals

Healthcare

Technology

FinancialServices

Top Sectors #

595

484

1,483

192

387

363

374

371

1,763

1,938

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type US$m

8

14

29

10

25

6

14

22

27

60

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type #


Top Exits

Top Exits in 1H2017


Company Sector Sellers Buyer Exit Type US$mnStake (%)

Globallogic Technology Apax CPPIB Secondary 720 48

ICICI Lombard General Insurance Company Ltd.

Financial Services FairfaxWarburg PincusLLC , Clermont Group , IIFL

Secondary 383 12

Capital First Ltd Financial Services Warburg Pincus GIC & others Secondary 275 25

Dalmia Bharat Ltd. CBP KKR India NA Open Market 236 8

Eris Lifesciences Ltd. Pharmaceuticals ChrysCapital NA IPO 200 16

Idea Cellular Ltd. TelecommunicationProvidence Equity Partners LLC

NA Open Market 199 3

Edelweiss Financial Services Ltd.

Financial Services Carlyle NA Open Market 130 8

Apollo Hospitals HealthcareKhazanah Nasional Berhad

NA Open Market 129 5

Max Financial Services Financial Services Goldman Sachs NA Open Market 126 6

IndusInd Bank Ltd. Financial Services Norwest NA Open Market 125 1


Fund Raise

► The first half of 2017 saw US$2 billion in fund raise, 30% decline compared to 1H2016, but a 54% increase over 2H2016

► New fund raise plans announced also decreased by 36% to US$ 5 billion in 1H2017 compared to same period last year.

Top Fund Raise in 1H2017

Status Fund US$m Strategy Remark

Raised ChrysCapital fund VII 600 Sector agnostic Seventh fund

RaisedEdelweiss Special Opportunities Fund (ESOF) II

350 sector agnostic Final close of second credit focused fund

RaisedICICI Venture: India Advantage Fund Series 4 (IAF4)

160 Sector agnostic Final close of US$ 350m fund

Raised KKR 147 Sector agnostic Credit focused fund

Raised SPAC Constellation Alpha 144 Healthcare Fund raise through IPO

Raised IDFC Alternatives 100 Sector agnostic First close of fourth fund


PE Quarterly Roundup – 2Q2017

Key Trends - Quarterly

► On a quarterly basis, investments increased 93% in value (US$ 7.1 billion Vs US$ 3.7 billion in 2Q2016) with number of deals remaining similar.

► The growth was driven by sharp increase of 103% and 133% in buyout and growth deals respectively. 2Q2017 demonstrated the best quarterly performance recorded by both buyout (US$1.9 billion across 11 deals) and growth (US$ 3.1 billion across 47 deals) deals in over a decade.

► Quarterly comparison shows a 2.6X jump in exits (US$ 2.8 billion Vs US$ 1.1 billion in 2Q2016), driven by open market and secondary exits. There were 4 PE backed IPOs in 2Q2017.

► From a sector perspective Financial services (US$1.1 billion across 17 exits) and Life sciences (US$648 million across 13 exits) were the top sectors for exits in 2Q2017.



PE/VC headline trends – Quarterly

US$ mn #

2,792 2,698 4,813 3,450 5,139 6,003 5,043 4,310 3,658 3,097 5,138 4,229 7,054

121 113 126

181 188220

178146

164

121157

132168

0

50

100

150

200

250

-

2,000

4,000

6,000

2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Investments

863 991 1,081 1,161 2,749 1,205 1,358 2,067 1,073 2,046 1,483 2,033 2,776

47 48 4960 59

66 69

42 44

64 59 6168

0

20

40

60

80

-

1,000

2,000

3,000

2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Exits

1,047 470 1,279 1,892 1,938 1,285 1,325 2,075 942 320 976 1,287 719

4 5

10

5

11 12

8

1614

2

911

9

0

5

10

15

20

-

500

1,000

1,500

2,000

2,500

2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

Fund Raise


Investments – Q2 Analysis


3,658

7,054

2Q2016

2Q2017

Total Investment US$m

164

168

2Q2016

2Q2017

No. of Deals

549

928

407

426

1,348

661

1,885

209

981

3,138

Debt investment

Buyout

PIPE Financing



Deal Type US$m

21

5

4

84

50

21

11

8

81

47

Debt investment

Buyout

PIPE Financing



Deal Type #

265

316

678

601

1,798

308

294

523

913

4,837

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size US$m

73

21

21

8

5

75

19

15

12

16

< $10m

$10m - $20m

$20m - $50m

$50m -$100m

> $100m

Deal Size #

** Deal value not available on 31 out of 168 deals in 2Q2017 and 36 out of 164 deals in 2Q2016


Investments – Q2 Sector Cut


108

113

126

219

318

350

532

1,002

1,045

2,548

Healthcare

Business and Prof Ser

RCP

Pharmaceuticals

Infrastructure

Power and utilities

Ecommerce

RHC

Technology

Financial services

Top Sectors US$m2Q2017

2Q2016

1

5

5

3

19

8

7

24

15

35

2

4

5

7

10

12

13

15

33

39

Power and utilities

Infrastructure

Pharmaceuticals


RHC

RCP

Healthcare

Ecommerce

Financial services

Technology

Top Sectors #


Top Investments

Top Investments in 2Q2017


(%)

Paytm SoftBank Financial services Expansion/ Growth 1,400 NA

IndoSpace CPPIB RHC Buyout 500 NA

ICICI LombardWarburg Pincus, Clermont Group , IIFL Special Opportunities Fund

Financial services Expansion/ Growth 383 12.2

Tata Technologies Ltd Warburg Pincus Technology Expansion/ Growth 360 43.0


300 NA

Aegis Ltd Capital Square Technology Buyout 275 100.0

Oyo Rooms SoftBank EcommerceStart-up/ Early Stage

250 15.0

Hindustan Powerprojects Macquarie Group Power and utilities Buyout 250 100.0

Religare Health Insurance True North, Faering Capital Financial services Buyout 200 80.0

Bangalore International Airport Ltd. Fairfax Infrastructure Buyout 200 10.0

Shriram Properties and Infrastructure Pvt. Ltd., Information Technology Special Economic Zone

Xander Finance RHC Buyout 190 100.0


Exits – Q2 Analysis


1,073

2,776

2Q2016

2Q2017

Total Exits US$m

44

68

2Q2016

2Q2017

No. of Exits

418

157

17

114

367

325

164

327

912

1,048

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type US$m

4

5

13

4

18

4

5

11

18

30

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type #

2

13

85

14

4

488

149

255

303

307

345

1,055

Industrial products

Technology

Healthcare

CBP

Pharmaceuticals

Financial Services

Top Sectors US$m

2

8

3

1

1

8

7

7

8

3

5

17

Industrial products

Technology

Healthcare

CBP

Pharmaceuticals

Financial Services

Top Sectors #


Top Exits

Top Exits in 2Q2017



ICICI Lombard General Insurance Company Ltd.

Financial Services FairfaxWarburg PincusLLC , Clermont Group , IIFL

Secondary 383 12

Capital First Ltd Financial Services Warburg Pincus GIC & others Secondary 275 25

Dalmia Bharat Ltd.Cement and building products

KKR NA Open Market 236 8


Apollo Hospitals Healthcare Khazanah NA Open Market 129 5

ItzCash Card Ltd Financial ServicesIntel Capital, Matrix, Lightspeed

Ebix Inc Strategic 124 80

Max Financial Services Financial Services Goldman Sachs NA Open Market 123 5

Tata Technologies Ltd Technology Tata Capital Warburg Pincus Secondary 109 13

Intas Pharmaceuticals Pharmaceuticals ChrysCapitalCapital International

Secondary 106 3

Mphasis Ltd Technology Blackstone Mphasis Ltd Buyback 99 5


Fund Raise

► On a quarterly basis, fund raise declined 24% to US$ 719 million compared to US$942 million last year.

Top Fund Raise in 2Q2017


RaisedEdelweiss Special Opportunities Fund (ESOF) II

350 Sector agnostic Final close of second credit fund


Raised CapAleph 70 Sector agnostic First close

Raised Kotak Realty 50 Real Estate For affordable hosing

Raised IAN 27 Sector-agnostic Early stage / Angel investing


PE Monthly Roundup – June 2017

PE/VC headline trends – Monthly

US$ mn #

409 1,164 494 388 766 71 646 880 602 550 843 1,383 550

14

21 21 2218 16

25

15

24 22

32

24

12

0

10

20

30

40

-

500

1,000

1,500

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Exits

312 30 0 290 335 450 191 331 850 106 377 200 2320

2

4

6

0

200

400

600

800

1000


Fund Raise

608 859 1,007 1,231 1,185 927 3,026 1,196 393 2,641 1,920 3,447 1,507

70

40 39 42

60

41

56

43

30

6067

5645

0

20

40

60

80

-

1,000

2,000

3,000

4,000


Investments


Key Trends

► From a monthly perspective, at US$1.5 billion, June 2017 recorded a sharp increase of 148% compared to US$608 million in June 2016 despite a 36% decline in number of deals (45 deals vs 70 deals in June 2016), mainly on account of five large US$100 million and above deals accounting for 71% of aggregate deal value. June 2017, however, did not record any PIPE deals.

► When compared to the previous month, June 2017 investments declined by 56% in value terms. May 2017 witnessed Softbank’s US$1.4 billion investment in Paytm, which is the largest deal in the Financial Services sector in India ever. In volume terms, investments declined 20% compared to the previous month.

► Technology (US$708 million across 15 deals) and Financial Services (US$200 million across 12 deals) were the top sectors for the month.

► June 2017 recorded 34% increase in value of exits compared to same period last year (US$550m across 12 exits vs US$409m across 14 exits in June 2016). However, on a month-on-month basis, there was a sharp decline of over 50% in both value and volume terms.



66 (20) 59 (4)112 (3)

200 (3)

1069 (5)

<$10Mn $10Mn -$20Mn

$20Mn -$50Mn

$50Mn -$100Mn

>$100Mn

Deal Size US$ mn (Volume)

Investments – US$1.5 bn over 45 deals


** Deal value not available on 10 out of 45 deals in June 2017

1

2

5

6

54

75

75

182

200

200

708

RCP

Healthcare

Food and Agriculture


Ecommerce

Pharmaceuticals

Logistics

RHC

Infrastructure

Financial services

Technology

Value US$ million

1

1

1

1

1

2

3

3

5

12

15

Healthcare

Food and Agriculture

Pharmaceuticals

Logistics

Infrastructure


RCP

Ecommerce

RHC

Financial services

Technology

Volume

614 (8)

419 (31)

NA (0)

199 (1)

273 (5)

Expansion/Growth

Start-up/Early Stage

PIPE Buyout Debt

Deal Stage US$ mn (Volume)


Investments – Monthly sector cut


73

-

267

211

54

45

187

111

709

182

136

693

316

1,649

200

121

306

31

708

952

56

-

498

507

211

362

- 500 1,000 1,500 2,000 2,500 3,000 3,500

Feb

Mar

Apr

May

Jun

Investment by Sector – US$mn

3

-

6

6

3

1

6

1

4

5

4

11

9

11

12

8

14

16

8

15

-

5

7

2

3

8

16

25

17

7

- 10 20 30 40 50 60 70 80

Feb

Mar

Apr

May

Jun

Investment by Sector – No. of Deals

Ecommerce RHC Financial Services Technology Telecom RCP Automotive Power & Utilities Others Education


Investments – Monthly (deal size and type)

127

128

106

270

61

350

130

554

435

277

200

1,607

1,193

2,192

1,069

Feb

Mar

Apr

May

Jun

Deal Size Trend - Value (US$ mn)

16

23

29

26

20

3

8

8

7

4

2

8

2

10

3

2

7

6

3

3

0

4

6

4

5

4

9

15

5

10

Feb

Mar

Apr

May

Jun

Deal Size Trend - No of Deals

<$10Mn $10Mn - $20Mn $20Mn - $50Mn

$50Mn - $100Mn >$100Mn NA

539

454

1,687

614

98

289

394

168

420

1,476

81

73

980

705

200

259

11

377

274

Feb

Mar

Apr

May

Jun

Deal Type Trend - Value

5

18

23

15

8

17

24

30

20

31

3

9

3

5

1

3

7

3

1

1

6

4

12

5

Feb

Mar

Apr

May

Jun

Deal Type Trend - No of Deals

Expansion/ Growth Capital Start-up/ Early StagePIPE Financing BuyoutDebt investment


Top Investments

Top Investments in June 2017


(%)

Tata Technologies Ltd Warburg Pincus Technology Expansion/ Growth 360 43.0


300 NA

Bangalore International Airport Ltd. Fairfax Infrastructure Buyout 200 10.0

Aditya Birla Capital PremjiInvest Financial services Expansion/ Growth 109 2.2

Embassy Group Piramal FinanceReal Estate, Hospitality & Construction

Debt 100 NA

Apollo LogiSolutions Ltd. Piramal Finance Logistics Expansion/ Growth 75 NA

Strides Shasun Ltd. KKR Pharmaceuticals Debt 75 NA

Mahagun Real Estate Pvt. Ltd. Piramal FinanceReal Estate, Hospitality & Construction

Debt 50 NA

ANI Technologies Pvt. Ltd(Ola Cabs) Tekne Capital Ecommerce Expansion/ Growth 50 NA

Mswipe Technologies Pvt. LtdMatrix, DSG Consumer Partners , Falcon Edge Capital, UC-RNT Fund

Financial servicesStart-up/ Early Stage

31 NA


Exits – US$550 bn across 12 deals in June


Exits in June

5 (1)

11 (2)

13 (1)

56 (2)

217 (2)

245 (3)

Industrial products

Healthcare

Financial Services

RHC

Pharmaceuticals

Technology

Exits by Sector US$mn (Volume)

237 (2)

154 (3)

NA (1)

119 (2)

37 (4)

IPO Buyback Strategic SecondarySale

Open Market

Exits by Type US$mn (Volume)


Exits – Top Exits

Top Exits in June 2017




Tata Technologies Ltd Technology Tata CapitalWarburg PincusLLC

Secondary 109 13

Mphasis Ltd Technology Blackstone Mphasis Ltd Buyback 99 5

Indiabulls Infraestate Ltd. RHC IL&FS IndiaIndiabulls Real Estate Ltd.

Buyback 55 10

Tejas Networks Technology

Cascade Capital,India Industrial Growth Fund, Intel Capital and others

NA IPO 37 11

Natco Pharma Ltd. Pharmaceuticals CX Capital NA Open Market 17 1

Equitas Holdings Ltd. Financial Services Creation NA Open Market 13 1

Quality Needles Pvt. Ltd. Healthcare CX Partners TPG Secondary 11 5

Welspun Enterprises Industrial productsApollo

ManagementNA Open Market 6 3

Sinclair Hotels RHC The Xander Group NA Open Market 1 6


Fund Raise

Top Fund Raise/Announcements in June 2017



Raised Kotak Realty 50 Real Estate For affordable hosing

Raised IAN 27 Sector-agnostic Early stage / Angel rounds

Announced Tata Capital 1,000 Healthcare Three funds

Announced Ascendas-Singbridge 300 Real Estate


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