PE Quarterly Roundup Q0
PE/VC headline trends Quarterly US$ mn,000,000,000,000,000 - US$ mn 000 00 000 00 0 0 6 9 Investments 9,,9,69,,0,9 6,00,0,0,6,09,, Exits 9 9 0 Q0 Q0 Q0 Q0 Q0 Q0 Q0 Q0 Q06 Q06 Q06 Q06 Q0 66 9 6 99 0 6 9 0 06 0 06 0 69 6 9 6 Q0 Q0 Q0 Q0 Q0 Q0 Q0 Q0 Q06 Q06 Q06 Q06 Q0 US$ mn # Fund Raise,000,600,00 00 00-0 0,0 0,9,9,9,,,0 9 0 96, Q0 Q0 Q0 Q0 Q0 Q0 Q0 Q0 Q06 Q06 Q06 Q06 Q0 6 6 6 9 # 0 00 0 00 0 0 # 0 60 0 0 0 0 0 0 Page
Investments Q analysis PE/ VC investments witnessed a marginal decline on a Y-o-Y basis during the first quarter (January-March) of the calendar year. Investments declined % in value terms (US$. billion vs US$. billion in Q06) and % in volume terms ( deals vs 6 deals in Q06). However, compared to Q06, investments declined % by value and % by volume. All segments other than PIPE investments recorded decline in both value and volume. PIPE investments overtook growth capital as the largest mode of investment in Q0, a situation last witnessed in Q0, mainly on account of the large US$9 million investment in Bharti Infratel by CPPIB along with KKR for a 0.% stake. Five out of the seven investments of value greater than US$00 million in 0 were PIPE investments. Investments by Canadian Pension funds accounted for almost a third of the total investment value recorded in Q0. These include the CPPIB s US$ 0 million investment in Global Logic for a % stake, US$ million investment in Kotak Mahindra Bank along with CDPQ for a.% stake, and US$0 million invested in Bharti Infratel for.% stake (KKR was the other investor acquiring % stake in the deal). From a sector perspective, Telecom topped the chart with US$9 million KKR-CPPIB investment in Bharti-Infratel. Except for Technology sector, which recorded US$90 million across deals in Q0, investments in all other prominent sectors like Financial Services, Real Estate, and Ecommerce declined. Ecommerce recorded lowest quarterly deal value and volume since Q0. Similarly, Real Estate recorded lowest deal value and volume since Q0. *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Investments Q analysis Total Investments US$mn Total Number of Deals Q0 Q0 Q06 0 Q06 6 Deal Type US$ mn Deal Size US$mn Debt Investment 66 >$00Mn 6 PIPE Financing 696,6 $0Mn - $00Mn 9 0 Expansion/ Growth Capital,0,0 $0Mn - $0Mn 0 Buyout 9 $0Mn - $0Mn Start-up/ Early Stage 0 6 <$0Mn Deal Type # Deal Size # Debt Investment PIPE Financing Expansion/ Growth Capital Buyout Start-up/ Early Stage 6 0 0 0 6 >$00Mn $0Mn - $00Mn $0Mn - $0Mn $0Mn - $0Mn <$0Mn 6 6 6 6 ** Deal value not available on out of deals in Q0 and on out of 6 deals in Q06 Page
Investments Q sector cut 0 06 Top Sectors Composition US$ mn Top Sectors Composition # Telecom - 9 Telecom 0 Technology 90 Technology 6 Financial services,00 Financial services 0 Healthcare 9 6 Healthcare RHC 9 RHC 6 Logistics Logistics 9 Education Education 0 RCP 6 RCP 6 Ecommerce 6 Ecommerce 9 Infrastructure 0 Infrastructure *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Top Investments Top Investments in Q0 Month Company PE Investor Stage Sector US$mn Mar Bharti Infratel Ltd. KKR, CPPIB PIPE Telecom 9 Jan GlobalLogic CPPIB Growth Capital Technology 0 Mar Kotak Mahindra Bank CDPQ PIPE Financial Services Mar KIMS Group True North Growth Capital Healthcare 00 0 Jan PVR Ltd. Warburg Pincus PIPE Media and Entertainment 9 Mar Kotak Mahindra Bank CPPIB PIPE Financial Services Mar Can Fin Homes Ltd. GIC PIPE Financial Services Mar Home First Finance True North Buyout Financial Services 00 NA Mar Delhivery Pvt. Ltd. Carlyle, Tiger Global Start-up/ Early Stage Logistics 00 Mar Resonance Eduventures KKR Debt Education 9. NA Stake (%) Page 6
Exits Quarterly In Q0, there was a marginal % Y-o-Y decline in deal value, however, in volume terms there was % growth. Compared to Q06, exits reported an increase in both value and volume of % and % respectively. Exits through open market recorded their best performance in over five years at US$90 million across 0 deals and emerged as the preferred mode of exit in Q0. Second in line were secondary exits with US$ million across 9 deals, mainly contributed by US$0 million partial divestment of Global Logic by Apax to CPPIB. There were fewer strategic exits in Q0 (US$ million across deals) compared to Q06 (US$. billion across 6 deals, which included the large US$. billion Alliance Tire exit by KKR). There were two PE backed IPOs in Q0 (BSE and CL Educate) vs four in Q06. Financial Services (US$ million, deals) and Technology (US$0 million, deals) were top sectors witnessing exit activity followed by Healthcare (US$9 million, deals) and Real Estate (US$ million, 6 deals) *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Exits Q analysis Total Exits US$m Total Number of Exits Q0,0 Q0 6 Q06,06 Q06 Exit Type US$m Top Sectors US$ mn IPO 6 Technology Financial Services 0 Buyback 0 Telecommunication 60 99 Secondary Sale 9 RHC Open Market Strategic 0 90 66 Healthcare RCP Automotive 9,9 Exit Type # Top Sectors # IPO Buyback Secondary Sale Open Market Strategic 6 9 9 9 6 0 Financial Services Healthcare RHC Technology Infrastructure RCP Automotive 0 0 6 0 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Top Exits Top Exits in Q0 Company Sector Sellers Buyer Exit Type US$mn Stake (%) Globallogic Technology Apax CPPIB Secondary 0 Idea Cellular Ltd. Telecom Providence NA Open Market 99 Edelweiss Financial Services Max Financial Services IndusInd Bank Financial Services Financial Services Financial Services Carlyle NA Open Market 0 Goldman Sachs NA Open Market 6 6 Norwest NA Open Market *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 9
Fund Raise First quarter of 0 witnessed US$. billion in fund raise, a % decline compared to Q06. Q0 saw new fund raise plan announcements of over US$.6 billion. However, these were much smaller compared to announcements of US$. billion in Q06, large proportion of which were by GOI undertakings. Status Fund US$m Strategy Remark Raised ChrysCapital fund VII 600 Sector agnostic Raised ICICI Venture: India Advantage Fund Series (IAF) Top Fund Raise/Announcements in Q0 Raised KKR Sector agnostic Raised IDFC Alternatives 00 Sector agnostic Announced Ascent Capital 00 Sector agnostic Announced Indiabulls Real Estate 60 Sector agnostic Final close of its US$0 million fund First close of it US$00 million credit fund First close of its US$00 million fourth fund Page 0
PE Monthly Roundup Mar 0
PE/VC headline trends Monthly,00 0,00 6 9,00 Investments US$ mn # 0 60 60 6 60 0 9 0 00 (00),0,0 60 9,00,, 9,06,96 0,6 Mar-6 Apr-6 May-6 Jun-6 Jul-6 Aug-6 Sep-6 Oct-6 Nov-6 Dec-6 Jan- Feb- Mar- 0 - US$ mn,00,000 00 0 Exits 6 # 0 0 0 -, 9 09,6 9 66 66 0 60 0 Mar-6 Apr-6 May-6 Jun-6 Jul-6 Aug-6 Sep-6 Oct-6 Nov-6 Dec-6 Jan- Feb- Mar- US$ mn # Fund Raise 000 00 600 00 00 0 0 90 0 0 90 0 9 0 06 Mar-6 Apr-6 May-6 Jun-6 Jul-6 Aug-6 Sep-6 Oct-6 Nov-6 Dec-6 Jan- Feb- Mar- 0 6 0 Page
Investments US$.60 bn over 60 deals PE/VC investments in March 0 (US$.6 billion across 60 deals) recorded a strong uptick of % in value terms and % in volume terms over March 06. Compared to the previous month, while deal volume almost doubled, deal value grew by 6. times in March 0. Deal activity had fallen to a three year low of US$00 million across deals in February 0. The growth was primarily driven by large PIPE deals by Canadian pension funds. The deal activity also picked up across deal segments compared to the lows reached in the previous month. From a sector perspective, Telecom topped the chart due to the large KKR-CPPIB investment in Bharti-Infratel, followed by Financial Services (US$69 million across deals). Ecommerce did not see any equity investment in March 0 there was only one US$ million debt raise by Bigbasket from Trifecta. *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Investments US$.60 bn over 60 deals Value US$ mn Volume Telecommunication Financial services Healthcare Logistics RHC Education Technology Automotive RCP Food and Agriculture Power & Utilites Others 0 0 69 9 Technology Financial services RHC Logistics RCP Education Healthcare Media and Entertainment Business and Prof Serv Automotive Telecom Others 6 Deal Size US$ mn (Volume) Deal Stage US$ mn (Volume) 606 () 6 (9) () 6 () 0 () () () 9 () () 9 (6) <$0Mn $0Mn - $0Mn $0Mn - $0Mn $0Mn - $00Mn >$00Mn ** Deal value not available on 9 out of 60 deals in March 0 Expansion/ Growth Start-up/ Early Stage PIPE Buyout Debt *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Top Investments Top Investments in March 0 Company PE Investor Sector Stage US$mn Stake (%) Bharti Infratel Ltd. KKR, CPPIB Telecommunication Growth Capital 9 Kotak Mahindra Bank CDPQ Financial services PIPE KIMS Group True North Healthcare Growth Capital 00 0 Kotak Mahindra Bank CPPIB Financial services PIPE Can Fin Homes Ltd. GIC Financial services PIPE Page
Investments Monthly sector cut Investment by Sector US$mn Mar - 69 9 9 Feb 6 - Jan -9 Dec 6 9 0 -, Nov 6 66 0 - - 00,000,00,000,00,000,00 Investment by Sector No. of Deals Mar - 6 6 Feb - Jan Dec 6 6 Nov 0 0 0 0 0 0 60 Ecommerce RHC Financial Services Technology Telecom RCP Pharmaceuticals Food and Agriculture Others *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 6
Investments Monthly (deal size and type) Deal Size Trend - Value (US$mn) Deal Type Trend Value (US$mn) Mar 9 0 60 Mar 9 9 6 9 Feb 9 0 Feb 0 9 Jan0 9 Jan 0 Dec0 0 9 Dec 69 069 Nov 6 Nov 96 96 9 Deal Size Trend No. of Deals Deal Type Trend - No of Deals Mar 9 Mar 9 6 Feb 6 0 Feb Jan 9 Jan 9 Dec Dec 6 Nov 9 0 Nov 6 <$0Mn $0Mn - $0Mn $0Mn - $0Mn $0Mn - $00Mn >$00Mn NA Expansion/ Growth Capital PIPE Financing Debt investment Start-up/ Early Stage Buyout Page
Exits US$0 mn across deals in Mar In March 0, at US$0 million across deals, exits were lower by 9% in terms of value but 0% higher in terms of volume compared to March 06. March 06 had seen one of India s largest exit by a PE investor in KKR s US$. billion exit from Alliance Tire. Open market operations emerged as the preferred mode of exits accounting for 0% of exits by value and % by volume. Financial Services was the predominant sector accounting for % of the value of exits. Exits in March Exits by Sector US$mn (Volume) Exits by Type US$ mn (Volume) Financial Services 90 () () RCP () Infrastructure () Industrial products 9 () Logistics Media & Entertainment 6 () () 6 () 9 () Cement and building 6 () () NA () Healthcare Education 0 () () IPO Open Market Secondary Sale Strategic Buyback *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Exits Top Exits Company Sector Sellers Buyer Exit Type US$mn Edelweiss Financial Services Ltd. Top Exits in March 0 Stake (%) Financial Services Carlyle NA Open Market 0 IndusInd Bank Ltd. Financial Services Norwest NA Open Market Cavinkare Pvt. Ltd. RCP ChrysCapital NA Buyback 9 0 Manappuram Finance Ltd. Financial Services Baring India NA Open Market *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 9
Fund Raise On a monthly basis fund raise activity was lowest in seven months at US$06 million. Status Fund US$m Strategy Remark Raised IDG Ventures India fund III 0 Sector agnostic Final close of US$00 million rd fund Raised Kaizen PE Education First Close of its nd fund Raised Pi Ventures Technology startups First close Announced Ascent Capital 00 Sector agnostic Announced Nandan Nilekani, Sanjeev Aggarwal Top Fund Raise/Announcements in March 0 00 Sector agnostic Page 0
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