PE Roundup November 017
PE/VC headline trends Monthly US$ mn # Investments,000 7 80 8 1 0 7 0,000 0 0,000 7,0 1,1,17 1,0,7 1,07 1,70, 1,7,0,7 0-0 Nov-1 Dec-1 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17,000,000 1,000-000 100 00 00 0 Exits 1 1 17 1 8 71 880 0 0 8 1,8,1,0,7 Nov-1 Dec-1 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Fund Raise 8 1 0 11 1 80 77 00 1 18 1 7 Nov-1 Dec-1 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 0 0 0 0 8 0 Page
Key Trends Investments November 017 recorded 17% increase in value of investments, while in terms of volume it increased 7% compared to same period last year (US$. billion across deals in November 017 vs US$0. billion across 1 deals in November 01). On a month-on-month basis, there was an increase of 0% in value terms while number of deals remained same. The increase was driven by significantly higher number of high value deals of value above US$0 million. November 017 recorded ten deal of value greater than US$0 million (highest number for any given month ever) aggregating. billion. 017 is emerging as the best year ever for high value deals (deals above US$0 million); deals so far, aggregating US$18. billion. This reiterates the growing interest of the investor community to invest in the Indian PE market and their growing confidence to make larger bets. This is also due to the fact that we are witnessing many big bracket pension funds, sovereign wealth funds and global buyout funds increasing their direct exposure to India and not just sticking to the LP route. As a case in point, CPPIB with its US$0 million investment in ReNew Power (largest single PE investment in the Power sector in India so far) and Abu Dhabi Investment Authority (ADIA) investing US$00 million in Cube Highways were among the top deals in November 017. In terms of stage of investment, expansion/growth capital recorded the highest numbers with US$71 million invested across four deals followed by early stage that recorded US$7 million invested across 7 deals. There were two buyouts aggregating to US$8 million in November 017. From sector point of view, Financial services topped the charts with US$ million invested across nine deals. 017 has been the best year for Financial services which has recorded US$.8 billion across deals so far, more than double the previous high of US$. billion across 7 deals recorded for the whole of 01. Similarly, 017 is turning out to be the best year in value terms for other prominent sectors like real estate, ecommerce, technology, RCP, and healthcare as well. Page
Key Trends Exits November 017 recorded the highest value of exits ever for any given month, exits worth US$.7 billion) mainly due to one large open market exit which saw Qatar Foundation Endowment selling % stake in Bharti Airtel for US$1. billion. There were two PE backed IPO in November 017 which saw Kedaara selling 1.% stake in Mahindra Logistics for US$ million and Reliance Alternative Investment Fund selling % stake in Khadim for US$8 million. From a sector perspective, Telecom topped the charts due to the large US$1. billion exit by Qatar Foundation Endowment, followed by Financial services with four exits worth US$0 million. Fund Raise November 017, recorded fund raise of US$7 million and fund raise plans announcements of US$. billion. Fundraise in November 017 was 0% higher compared to November 01 (US$0 million) Page
Investments US$. bn over deals Value US$ million Volume Financial services Technology 1 RHC 8 RHC Power & Utilities 7 Financial services Technology 1 Ecommerce Infrastructure 00 RCP Logistics 1 Food and Agriculture Healthcare 0 Power & Utilities RCP Media & Entertainment Food and Agriculture Others 1 11 Logistics Others Deal Size US$ mn (Volume) Deal Stage US$ mn (Volume) () 71 (1) 7 () (1) (7) 18 () () 88 () 00 (1) 8 () <$Mn $Mn - $0Mn $0Mn - $0Mn $0Mn - $0Mn >$0Mn Expansion/ Growth Start-up/ Early Stage PIPE Buyout Debt ** Deal value not available on 7 out of deals in Oct 017 Page
Investments Monthly sector cut Investment by Sector US$mn Nov 1 8 1 Oct 1 17 Sep 1 7 1 Aug 0 10 77 Jul 8 0 00 000 000 000 000 000 Investment by Sector No. of Deals Nov 1 Oct 7 1 Sep 8 Aug 1 Jul 7 8 7-0 0 0 0 0 Ecommerce RHC Financial Services Technology Infrastructure RCP Automotive Power & Utilities Others Healthcare Page
Investments Monthly (deal size and type) Deal Size Trend - Value (US$ mn) Deal Type Trend - Value Nov 0, Nov 71 7 8 Oct 1 1, Oct 1, 0 Sep 117 1,0 Sep 1 Aug,71 Aug,8 10 18 Jul 00 71 Jul 18 Deal Size Trend - No of Deals Deal Type Trend - No of Deals Nov 1 7 1 Nov 1 1 Oct 8 7 Oct 1 1 Sep 1 7 Sep 1 Aug 1 Aug 1 1 Jul 1 8 Jul 1 <$Mn $Mn - $0Mn $0Mn - $0Mn $0Mn - $0Mn >$0Mn NA Expansion/ Growth Capital PIPE Financing Debt deal Start-up/ Early Stage Buyout Page 7
Top Investments Top Investments in November 017 Company PE Investor Sector Stage US$mn HDFC Standard Life Insurance Co. Ltd ReNew Power Ventures Pvt. Ltd. Aegis Ltd. Cube Highways and Infrastructure Pte Ltd small business loan portfolio of Karvy Group Profectus Capital Virtuous Retail Services Pvt. Ltd UC-RNT Fund, other anchor investors CPPIB Capital Square Partners, MENASA Capital, Jeneration Capital Financial services Power & Utilities PIPE Financing Expansion/ Growth Capital 0 Stake (%) Technology Buyout 00 0 ADIA Infrastructure Start-up/ Early Stage 00 Arpwood Partners Actis Financial services Financial services Expansion/ Growth Capital 00 Start-up/ Early Stage 00 APG Asset Management. RHC Start-up/ Early Stage 17 Radius Developers LLP HDFC Capital Advisors RHC Debt deal 1 - - - Avendus Capital Pvt. Ltd. KKR, Gaja Capital Financial services Expansion/ Growth Capital 1 Total Environment Building Systems Pvt. Ltd. Brookfield Capital Partners RHC Debt deal 1 - Page 8
Exits US$.7 bn across deals in November Exits in November 017 Exits by Sector US$mn (Volume) Exits by Type US$mn (Volume) Telecommunication 18 (1) (1) Financial Services () Chemicals 8 (1) RCP 7 () Technology () Logistics 8 () Others 1 (11) 1 () (1) 88 () () IPO Buyback Strategic Secondary Sale Open Market Page
Exits Top Exits Top Exits in November 017 Company Sector Sellers Buyer Exit Type US$mn Stake (%) Bharti Airtel Ltd. Telecommun ication Qatar Foundation Endowment NA Open Market 18 Max Group (Max Ventures and Industries Ltd. & Max Financial ) Financial Services Goldman Sachs (GS) and others NA Open Market 11 1 Cyient Ltd Technology ChrysCapital NA Open Market 0 Flightraja Travels Pvt. Ltd(via.com) Khadim India Ltd. Ecommerce Retail and Consumer products IndoUS Venture Partners, Sequoia Capital Reliance Alternative Investments Fund Ebix Inc Strategic 7 0 NA IPO 8 Mahindra Logistics Ltd. Logistics Kedaara Capital NA IPO 1 Cholamandalam Investment and Finance Company Ltd. Kajaria Ceramics Financial Services Industrial products Norwest NA Open Market Westbridge Capital NA Open Market Page
Fund Raise Top Fund Raise/Announcements in November 017 Status Fund US$m Strategy Remark Raised CX Partners 0 sector agnostic First close of second fund Raised Paragon Partners sector agnostic Maiden Fund Raised Epiq Capital 0 Technology First close of US$00 mn Maiden Fund Announced Edelweiss group 1,000 Infrastructure First Infra Fund Announced IIFL Investment Managers 00 Real Estate Debt Fund Page 11
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